Like the central planning that was done in the former Soviet Union, today’s economy and financial markets are centrally planned. The only problem is that just like the five-year plan in the Soviet Union, the economic and the earnings numbers are all an illusion. When you begin to realize this, then what appears in the papers each month makes more sense. You then begin to realize why companies aren’t hiring more workers or building new plants. That is why companies continue to slash payrolls and why job growth has been nonexistent. It is same reason that capital spending by business has been so anemic. Phony profits and trumped up economic numbers also explains why insider selling is now at a record. You can’t grow profits in an economy that isn’t really growing nor can you hire new workers or order new equipment with pro forma profits.
http://www.financialsense.com/stormwatch/update.htm
