What follows has been dug up from a perusal of titles I’d all but forgotten writing; but the experience that triggered it is like yesterday in my mind, made relevant again by a recent Bernanke appearance that shocked investment advisors and lowered bond rates.
Posted on June 25, 2013 by peterderemigis
Last Friday at an established Canadian grocery store I heard a cashier tell the person just ahead of me paying for groceries how she manages two jobs; then as she mentioned that “Wednesday” is her day off “here” she turned from the shopper ahead and looked straight at me as though she wanted to tell someone that she exists by running non stop from one job to the other.
And today on BNN(Business News Network) I again heard of inequality in Canada increasing which 2 or 3 investment commentators said was not, according to surveys, a major concern of business leaders, but that this inequality could become a business concern if it gets worse. But for now business can handle it, and besides its worse in the USA.; Canada they said ranks 12′th in equality between the haves and have nots, but the US.ranks only 17′th.
I also heard much talk about when the Chairman of the US. Federal Reserve will allow his country’s central bank rate to rise. One commentator said that so far the chairman’s comments about when he’ll stop purchasing government bonds has not been clear enough for corporations to start investing. It’s as though those in the know, know that whatever’s troubling the economy, the man in charge at the Reserve will fix it; it’s just a matter of when; then the Chairman will make the move that many of the investment community seem to dread: raise interest rates. But never fear: rising central bank rates will confirm that economic conditions are well again.
But in listening to his metaphoric images such as the scary “fiscal cliff”, stormy ”head winds”, and last week’s militaristic “aircraft carrier “; and his surprise at the bond market’s raising rates without his permission, I can’t help but wonder if there’ s anything the Chairman can do to instill confidence in corporations to get them investing so that people won’t have to work two jobs like the lady checking out groceries does.