What is wrong about the “growing economy myth” by the FED

Posted: March 21, 2014 in Uncategorized
Tags: ,

-From 2004 (and specially since 2008) company profits are driven by financial engineering, not economic growth

– Buybacks and dividend increase have been financed by low interest debt issuances, not growth

-Full time employment relative to the entire population is almost 48% (higher than the lows of 46.5%, but lower than the pre GFC of over 52%

 

What does it means? Any interest rate hike, due 2015,  will have much more effect than estimated by the general market expects.

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