The notes and bonds that the US Government auctions off are for the running of the Federal government, not Corporate America. You are confusing the two.
surely low stock levels means you are running out or things to sell. so what could you sell when consumer consumption rises. also companies will take advantage of low debt and pay as much off as they can now while it is cheap so when the rate rises again it will be less damaging for them.
the last newspaper i read said the american government was funding corporate america. government bailout.
Wrong. Corporations will NOT pay down long-term debt with interest rates at current low levels. It does not make any sense for them to do so because the money can be put into capital projects that have much higher rates of return, or they can buy back their stock ( if they are publicly traded ) and increase their earnings per share, and/or increase their dividend to shareholders. If the credit markets are stable and liquid, and rates are LOW, Corporations will no doubt "roll" their debt from upcoming maturities out . . . into the future. Think Exxon-Mobile is looking to pay down debt at current interest rates, given the kind of cash flow that they generate? Of course not.
This is more like creative writing than news you can base your trades on: "Consumer spending appeared to have stabilized since the start of the year, sales and starts of new homes were flattening out, and the recent declines in capital spending did not look as severe as those that had occurred around the turn of the year," it said. "Moreover, it seemed likely that economic activity was in the process of levelling out, and the considerable improvements in financial markets over recent months were likely to lend further support to aggregate demand." In summary nothing we did not know in June and nothing that would point at the end of recession.
the credit market cannot be liquid when the rates is low it is contradictory to economic logic lower interest rates means less investment even if the individual is saving the banks are not passing on to the corporations. that is why they call it a credit crunch people cannot get credit.
other companies are not like exon mobile they are not making money in this climate. exon mobile is in the position that they are in a finite commodity with little competition, and probably a cartel.
True. But it's totally pointless to even try and trade the stock market off of these "summaries". As we all know, the market discounts economic recoveries, and will be much higher even as unemployment numbers continue to deteriorate/stagnate. That having been said, the interesting part of the FOMC notes was the Fed's sensitivity towards inflation - - - noting that they were already preparing themselves when it comes time to "take the punch bowl away". Looking at their recent balance sheet stats from last week, it does in fact appear that they have been purchasing more Treasuries and improving the quality of assets on its balance sheet.
i take it that you cannot argue with me any more because my points are more valid and as a result have quit.