Conservative Economic Commentary

Camden, NJ, preparing to close all its libraries http://capital-flow-watch.net/3xd #tcot >>
US job loss greatest in any post WW II Recession (Graph) http://capital-flow-watch.net/rwy #tcot >>
Consumers cut back on credit cards again in June http://capital-flow-watch.net/2sd #tcot >>
Bloomberg blasts mosque opponents, says they should be 'ashamed' http://capital-flow-watch.net/3xc #tcot Don't investigate finances. >>
Dems to blame GOP for expiry of Bush tax cuts, say GOP intended cuts to expire http://capital-flow-watch.net/wn3 #tcot >>

Subject: Dow Jones

Dow Jones & Company is an American publishing and financial information firm.
The company was founded in 1882 by three reporters: Charles Dow, Edward Jones, and Charles Bergstresser. Like The New York Times and the Washington Post, the company was in recent years publicly traded but privately controlled. The company was led by the Bancroft family, which effectively controlled 64% of all voting stock, before being acquired by News Corporation.
The company became a subsidiary of News Corporation after an extended takeover bid during 2007. It was reported on August 1, 2007 that the bid had been successful after an extended period of uncertainty about shareholder agreement. The transaction was completed on December 13, 2007. It was worth US$5 billion or $60 a share, giving NewsCorp control of The Wall Street Journal and ending the Bancroft family’s 105 years of ownership. (Wikipedia Jan 2010)

This is a 'game-changer'

Economic recovery may wait until 2016

By John Schroy, on June 12th, 2010 |

Inefficient market portends bumpy recovery

By John Schroy, on May 20th, 2010 |

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Inefficient markets have consequences that may be prickly for incautious investors.

Markets can be inefficient for different reasons and persist for long periods. The transition between one type of inefficient market to the next is usually a period of strife and uncertainty which may last five to fifteen years. Looking back at how the economy emerged from previous transitions, I note that in each new period, equity prices started at reasonable levels. This was true at the beginning of the Roaring Twenties, the Post WW II Period, and the Reagan Era. It is as if markets, recognizing prior inefficiencies ‘reset’ and start over. However, for the current market to ‘reset’, it will be necessary for equity prices to fall considerably, which will have dire consequences.

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