Monday, August 31, 2009

Funds Dump Retailer Shares as Money Flows out of Nordstrom Into Goldman

"Investors are dumping shares with the closest links to economic growth. While the government’s bailout of the U.S. financial system spurred record profits at New York-based Goldman Sachs Group Inc., Commerce Department data show salaries for Americans dropped the most in at least five decades during the 12 months through June."

Very sad. A president elected on the promise to help workers, but the sector of the economy most tied to that continues to fail. Real earnings of working people falling, but Wall Street bonuses are back to record levels. This is a total abrogation of a promise made by Obama.

To save yourself you must think like a speculator now because your wages are not likely to rise. It's okay to buy stocks in areas that get support--financials and anything having to do with the export sector (large industrials, technology, etc). It's also okay to buy commodities because there is not likey to be any real attempt to rein in that investment demand.

No comments: