ext_13249 ([identity profile] apostle-of-eris.livejournal.com) wrote in [personal profile] doc_strange 2009-10-29 05:54 pm (UTC)

I'm intrigued that the word “fundamentals” has completely dropped out of the pop economics lexicon.
Let's see . . . real unemployment (U6) is up to 1/6 (17%).
All those toxic mortgages are still toxic, and there are enough more scheduled to reach their implode date that they will not subside for another year . . .
A reasonable price/earnings ratio for a stock is a little less than 20; the P/E of the S&P 500 was over 130 the last time I looked . . .
Before the crash, "financial services" produced about 40% of the corporate profits in the country . . .

I'm very curious who the consumers are whose confidence is rising. I'm pretty sure the million whose unemployment compensation will run out between now and the end of the year aren's among them . . .

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