Zera's Blog

A Citizen's View from Main Street

NASDAQ Nears Highest Level In A Decade


“The Nasdaq finished within 25 points of its highest level in a decade”

Much like the unemployme­nt rate. Does anyone else see a disconnect here?

“Today, tech is hot again. Facebook – which hasn’t even gone public yet – is worth some $50 billion. Online content company Demand Media rose 33 percent on the day of its initial public offering last month.”

These are advertisin­g-driven revenues. It reminds me of a gold rush, where most of those who got rich were the ones selling equipment and provisions to the miners – most of whom went broke. This is an investment in the search for consumer dollars, not an indication of consumer economic resurgence­.

“Companies put off upgrading their computer systems and other large purchases during the worst days of the recession, and are making up for that now. Others are investing in new technology before they add employees.­”

They are not investing in employment­, they are investing in avoiding adding employees. This is not a healthy sign for the economy.

Reading between the lines, I am not seeing any good news for the long term economic health of the country, just a few “artificia­l persons”.
Read the Article at HuffingtonPost

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February 22, 2011 - Posted by | Capitalism, Economics, Labor | , , , , , , , ,

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