First to reform government we need to get government out of the private sector. The potential for losses from TBTF banks and Fannie and Freddie alone could blow giant holes in our deficits. Any real government spending control need to come about gradually because of the way money is created. A giant cut in deficit spending will slow an already moribund economy. We must gradually wean the economy off of what before was called a war economy, an economy driven by mass government spending to create artificial and unsustainable growth and demand.

One can not blame the companies. This is just one of the sad effect of zirpish policy which rewards debt and buybacks over capital spending and growth and is one of the major reason's why Japan and now the US is falling into a QE/low interest rate/low to no growth nightmare.

The press for mandating higher wages will curb this growth as well as tend to shove us closer to a recession. The call for mandated wage growth always looks good at the end of a cycle before the downturn. This in my book is yet more evidence the Fed has engaged on a loose money policy way too long.

Good article. It is unsurprising why there is capital flight out of Italy.

A rate rise will hurt gold. I do agree there is a strong floor for gold at the $1,000 level though.

The simple fact is that QE and zirp rates are bugger they neighbor actions which have very little effect besides crating asset bubbles that will go crash when a inevitable market downturn happens. Worse yet, the Fed with being unable to reverse QE and tighten not only shows how we have fallen into the same trap as Japan, but shows the Fed's complete rejection of economic reality and economics as a whole.

They have tried to turn our market to a simple managed economy where they control money creation without regard to economic fundamentals. This results in total failure just like it does in socialist countries that control money creation. Total loss of trust will happen as growth stops and they are unable to fight recessions or worse.

Underperformance to increase safety and decrease risk is fine unless your job depends on it. Unfortunately, the aims of money managers and the interests of many investors do not agree.

This is all abnormal and a result of Federal Reserve zirp policy encouraging increased debt, harming real growth, discouraging capital investment, and fueling dividends and buybacks rather than real growth. With allies like this who needs enemies. Not only does it destroy the economy and weaken our corporations, it undermines capitalism itself.

Do not blame the companies and Execs, nor capitalism. They are just players in a financial game the Federal Reserve is creating which undermines America in order to favor the TBTF banks.

Marketwise we seem to be, however, realize the market is moving on central bank lack of action more than on economic fundamentals that are still weak. As rent rises and home prices remain above normal levels I don't expect the economy to improve much since those benefitting from the housing income and profit are only using it to cover the decreased income from more tradition investments.

The Fed already made it abundantly clear they aren't raising rates this time and maybe not ever this year. Should we be happy, no. If they wait for the economy to go into a cyclical downturn at zirp rates it puts our economic fates at grave danger and they know it. However, joy and happiness abound in the market where reality plays little to no part. The worse the economy gets the more the central bank and government take actions which is much easier to figure out than studying economic signals. Whether or not people want to admit it, but our financial market is already operating a lot like a socialist programmed economy.