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Earning season has in I would think.
You say pretty good now.
It's been pretty good so far but good as it usually is as -- way I would say the majority of companies always beat estimates.
Except in the worst of of times -- a recession so that's what's going on.
I feel like it was pretty well understood that you know -- earnings trend after some a couple of years -- great growth was gonna be flattening out just because the way the math works yet.
I don't have a relatively slow growth economy.
Particularly the markets kind of absorb that OK you know they're good good.
It's -- company by company I think that's was interesting about it right you have an Intel.
That that looks like it's getting punished a little bit by sending to the rest years not going to be great and have other ones of people are embracing the fact that there.
They're managing through so I -- healthy for the market you want the market to trade.
On company fundamentals as opposed to you know these huge macro things whether it's Europe or or anything else that -- -- -- faster -- -- think.
Better to go back to the old days of fundamental analysis has opposing a Christian while we were trading on what ever the company still all going forward yeah.
Well which which I think is still the case but I to -- it's more important that whether we're dealing with.
Or are we dealing with the chance for some kind of a major financial meltdown.
Out of your -- us and I think we kind of flip back and forth between those two things right now right -- yesterday the market rallies hard.
Because of a pretty decent Spanish government bond auction right we're back to.
Either all up for all down any given day when those things -- and things you're describing the background men.
Well on on a day to day basis in the back and I feel like what's happened is the central banks have kind of T -- some kind of immediate.
Crisis scenario this crash scenario -- off the table for the most part.
But it does kind of make you nervous when you see -- is that the Spanish bond yield pick up with the Italian buying us take up.
What's what's I think slightly encouraging is that the market is making distinctions right now between.
Those governments that seem like they are in worse or better shape I think Spain is obviously in the worst of the interesting thing to me is what does the market really want to hear out of Europe.
-- want to hear.
Massive austerity tomorrow which is really what Spain's being driven toward Spain is looking to reduce government spending by the equivalent of 5% of its GDP.
Number it's a lot going on here.
We would be you know probably rioting in the -- is how how much cash or would we wanna see that -- wanna sit and -- bad recession for themselves -- do we wanna see.
S in the central banks -- more money at the problem I don't really know what the market the first.
So here's a thing -- Spain's gonna cut 5% in government spending good luck with that but weeks -- need to do the same.
We need to do it over time as part of a longer term structural.
Thing -- in fact we we can actually point to the US rate he talked about the the tax provisions expiring the end of the year all these tests come together into the debt ceiling again -- -- -- -- -- the into the year.
What do we as you know citizens and what does the market wanna see well I've always fearing the so called fiscal cliff.
Right all these things are gonna sort of take money immediately out of right economy that we've gotten used to where there's the unemployment benefits it's a tax provisions it's the the bush tax cuts it's the marriage penalty coming back all these things.
And it's gonna basically act as a massive.
Kind of dampening of economic.
Strength because of -- reduce government spending but over a long period of time we actually need the government to get its.
Finance is more -- balance so that's the push fall.
It's so hot MAS hard done analog deposits with you but it's -- these are tough decisions to make during a political year share.
More than -- tough almost an.
Any -- -- anything you have that you have people who say you know this is a bad time to be ever to be raising taxes and a fragile economy we have to ask them.
When is a good time series did you have you ever advocated raising taxes in good times and the by the people saying you know what we can't really deal with that would deficits right now.
Because of -- fragile economy and you know what when are we gonna deal that really on a longer term basis so you're actually right today the election and makes it that much tougher there.
To actually coming and I do think that's why is this summer gets in to fall maybe before that.
You're gonna start to see a lot of this anxiety evidence itself probably in the market you are and that's my next question -- -- does is the market worried about this exploding deficit I feel like -- it's worried about it but it's not manifested in the -- you think it would which would be higher interest rates which would be.
You know real a lot of -- aversion it's really not.
I think it's it's one of those things where -- really captures.
Investors' collective attention at a three to six month.
Window in other words if it's far better way than six months that he usually is like you know delight in -- can't child you know it's a little too far away -- -- -- -- in planning for.
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