Cognitive Economics (how things work)Smarter BusinessUncategorized

Tiny Bits of Positive News

The markets love the little tiny bits of positive news and quickly turn them into giant mountains of positive expectations.  It’s fun to watch the markets move on little blips of hope.  This isn’t Bullishness that’s affecting the markets, it’s outright hope for relief from despair.  The problem is that hope doesn’t float the markets for long, and neither do earnings based on accounting practices and return on cash holdings.  At some point businesses must make real money, real earnings from real productivity of sales increases, like Apple does.  Not every company can do that right now since they are all held hostage by the little tiny people in Washington who are made up by the media to be great big world leaders and economic wizards. 

The markets have to come to the realization of all this and eventually price in the reality of the much higher cost of doing business.  Goldman Sachs and their Small Business effort isn’t likely to turn the markets around.  It takes freedom of cash flow and credit to do good business.  How will we have that if the Government keeps absorbing jobs and paying out cheaper dollars?