'Economists and analysts failed to connect the contrast between reality and the stock market'

[marmar]

(MarketWatch) — For months, economists and the media have proclaimed that we are in full-recovery mode. While the markets were at record highs, unemployment had not improved, economic growth was stagnant and most corporate earnings had little to do with an increase in sales and revenue and were based on moves like laying-off thousands of people and shedding non-performing assets.

Last week, Goldman Sachs Group Inc. — one of those bullish outfits projecting enthusiasm — reversed its earlier upbeat message, saying that consumer spending is slowing down, which will likely have a negative impact on future growth. The significance is that most analysts and economists are coming to grips with the fact that the economic data doesn’t support stock-market valuations at these levels.

What economists and analysts failed to connect is the contrast between reality and the stock market — the low consumer spending, paltry economic growth, weak hiring by companies and reckless quantitative easing by the Federal Reserve while the stock market soared.

So, let’s look at everything Goldman Sachs (and many others) missed, and the chain of economic events. .............(more)

The complete piece is at: http://www.marketwatch.com/story/the-current-slowdown-is-more-than-a-soft-patch-2013-04-23?siteid=yhoof2

[Rex]

1. They didn't miss anything, the economy is set up to make the rich money

on the stock market(s) and the working poor are affected down the line with inflation and a reduction in how much their dollar is worth, every year.

Smaller salary, shrinking value of the dollar, inflated prices and a huge conglomerate worried about 'growth' BUT not for the masses...only their shareholders. If we let private industry do whatever they want, they will destroy the nations infrastructure.

No oversight or regulations or real penalties creates an easy transition into plutocracy.

[reformist2]

2. For the ultrarich, the stock market *is* the real economy!

[xchrom]

3. Du rec. Nt