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It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford


Those who surrender freedom for security will not have, nor do they deserve, either one. Benjamin Franklin
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The idea that you know what is true is dangerous, for it keeps you imprisoned in the mind. It is when you do not know, that you are free to investigate. ~ Nisargadatta Maharaj

Tuesday 20 March 2012

Get out of stocks....rising unit labour costs ?

http://www.bloomberg.com/video/88453082/   an interview with Aberdeen Asset management strategist..
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3 comments:

  1. pebblewriter20 March 2012 at 04:24

    Great piece. Everyone's blaming oil for the uptick in inflation, when it's so much more broad-based. A friend of mine who does a lot of business in China says it's one of the top issues over there, too, as razor thin margins are already being crushed by exchange rate and credit issues.

    On a related note, I've been reading the TBAC minutes the past few months -- lots of talk about floating rate notes. Saw it in the MSM for the first time today, supposedly in response to lack of high grade ST and floating rate corp and financial debt for money market funds to invest in.

    My suspicion is that Tsy knows that buyers will soon be turning up their noses at notes at these rates, and floaters are the only way they'll be able to keep the volume up.

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  2. Chartrambler20 March 2012 at 22:31

    Thanks PW. I thought it was a good vid and he seemed like a sensible guy as far as fund managers go ! I was quite surprised about the labour costs given the high unemploment.

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  3. pebblewriter21 March 2012 at 05:49

    Just a hunch, but I think most businesses would prefer a little wage inflation/overtime to adding headcount until comfortable that the uptick in the economy is more than a "corrective wave." Personally, I think the jury's still out. Thanks for continuing to find interesting things to post.

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