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Tuesday, September 20, 2011

Equity Prices Correlate with Deficits


h/t Zero Hedge, via The World Complex, which cites Keynesian Economics After All by A. Johansen and I. Simonsen (July 18, 2011).

5 comments:

  1. This makes sense, but the fools at ZH dismiss it with self-righteous indignation.

    It's been over three years and they're still waiting for their doomsday moment.

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  2. @ Joe,

    Right. They get everything backwards.

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  3. So does corporate earnings. It's a pretty strong correlation

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  4. Wouldn't prices in general be correlated with Deficits?

    It would be interesting to see if there is a correlation with wages too.

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  5. I don't see this as a strong correlation, sometimes it is strong positive, sometimes strong negative and most of the time zero. What does it tell us? I think not much.

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