CFOs see economy improving, their judgment failing

Perhaps it is why they have not been promoted to CEOs. A survey of CFOs show that they are taking the odd position that the economy is getting better.

According to Reuters, "Compared with the previous quarter, 28.5 percent said they were more optimistic about the U.S. economy, up more than 7 percentage points from June." The poll was taken by Duke University and CFO Magazine and covers 1,300 financial chiefs from around the world.

Since the upbeat sentiment is hard to believe, it might be attributed to wishful thinking. Economists have been slow to call the current economic situation a recession, perhaps because they are hoping it won't be. Corporate officers usually forecast their results will get better and often tell the public that. It happened with several bank and brokerage executives last April. Things are improving, they said, but they were wrong.

Any normal executive looking at high commodity prices and rapidly dropping consumer demand would say that conditions will get worse for several quarters. Access to capital, even for large companies, is worse than at any time in over a decade. Banks do not want to risk capital even on "safe" lending.

If wishes were horses, all the beggars would ride. Someone is out of touch.

It is either CFOs or everyone else.

Douglas A. McIntyre is an editor at 247wallst.com.