There’s an old saying that ‘numbers don’t lie.’ However, when I apply simple common sense to the way I hear numbers spun across the financial media what doesn’t add up is precisely that: the numbers.
Once again I was left slack-jawed countless times as I heard one after another economist, analyst, chief investment big bank guru, et al tout their reasoning and pontificate why we’re on the verge of breaking out of this stagnant economic malaise of sub 1% GDP prints.
The reasonings were laughable when applying common sense rather than math skills to the arguments. Yet, as I’ve stated and wrote before. When it comes to this set of supposed number mavens: ‘They can add – but they can’t put two and two together.’
One argument now being proposed to help bolster the projections that Q2 will be closer to 3% as opposed to the abysmal print of Q1 is (even as the Atlanta Fed. is now predicting the same if not worse) that this jump will be fueled by (wait for it…) ‘Cap-ex spending relating to the bump up in crude prices over the recent weeks…’ (insert rimshot here)
This wasn’t coming from some ancillary small fund manager. This line of thought and analysis was coming from one of our ‘too big to fail’ taxpayer-funded bail-out houses of financial acumen.
As this ‘insight’ was simultaneously broadcast throughout television and radio, heralded as ‘This is why we have people like you on – for exactly this type of insightful analysis and perspective.’ I couldn’t help myself but to agree. For this is what ‘financial’ brilliance across the financial media now represents: Financial spin.
My analysis? With analysis like this? Taxpayers better get ready – again!
This post was published at David Stockmans Contra Corner by Mark St. Cyr ‘ May 18, 2015.
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