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Is Morale Improving in America?

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  • Description

    John Browne of Euro Pacific Capital explains why there is reason for some optimism in the U.S.

  • Duration 3:38
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Market looks pretty good economy looking better if you take a look at the jobless claims figure today five year low and John Browne joins a senior economic consultant at Euro Pacific.

He's what beach Florida have we turned the corner maybe.

And Greece to be optimistic John.

What I think bizarre reason -- some optimism I think strategically.

The economy is still in bad bad shape that tactic they.

-- as -- beginning to spend.

And that -- -- there is a good thing Elvis -- Festival I think the jobless thing is.

Has fallen.

Because a lot of people -- falling off the unemployment -- but secondly.

Consumers.

I have been lulled into a feeling.

That that things are getting better on them for their spending on government is kicked reality down the road.

-- -- borrowed against the credit of the young man in the future.

And created synthetic money and this is -- people and meanwhile consumers have.

Despite low interest rates and now there.

Frustrated about the recession right David I have negative interest rates and attempted.

To buy a new college now idea little five is out and then attempted -- -- new -- is to buy new rising and they got -- Things are picking -- in that respect let's -- that is good.

A little bit -- -- first of all the jobless claims that it it's worth pointing out that some of this may be seasonal deserted and analysis from some people.

That we may pay for this -- -- towards the end of the month with the number coming back we'll see but on your point about consumer spending.

I wonder why people are more confident and they're not thinking about the issues in Washington to do people just not.

-- care about that did they not care about the dysfunction in Washington and the second thing so they must care about their paycheck and it is and it.

And discouraging to a lot of people left smaller paychecks with the payroll taxes going back up at the beginning of the year why is the confidence still they -- despite those two issues.

What I have got lots of very and staying venues that I -- agree do it.

Andrew I didn't say confidence I sell lulled into a false sense that they want to spend -- that prepared to spend.

I think that is the big danger well because of what I've said there's been masses of money pushed into the system the government's barred its -- reality -- on the road.

So that we're not facing reality anymore wit and we've got -- -- Cash you've always been a dancer hang around the system huge critic -- that's kind of behavior and its critic of the Federal Reserve we talked the last few years but look at the stock market up again today -- Student -- will be at 141000 pretty -- looks like of the Dow thirteen 867 is the two of us are.

-- speaking seven that makes people feel better but it or are do you like what you see in the stock market or marketed as -- -- -- more about the future what do you make of it.

Well it does MA injured and of course is what you're saying is is -- -- but that.

The fact his individuals and not ready returning to start my his -- institutional work and of course.

A huge amount of money is accumulating -- great cash balances in corporation's insurance companies banks and evident.

And so this money is flowing into the stock market I think people see the bond market is the -- is bad travel more.

And then moving money into these other -- assets when I was a reason that there's a reason to be optimistic in certain areas for example.

In natural gas if you have a producer you have.

Transporting have natural gas -- -- at the port.

Those areas I think a very good and that the energy picture of the United States.

Is -- quite bullish and running to the future of Taiwan that's going to help enormously more about that and next time we have -- but always good to see John Brown.

Thanks a lot thank you have -- -- are the big story.

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