It Still Stinks
Stocks are beginning their crumbling phase. Down, down, down……
Interest rates remain low, as people still have some faith in bonds, but actually I think they are stupid in a way, as they don’t know where to put their money when they sell their stocks.
The Dollar is tumbling. Why? Well, the FED said that it might take 6 years for the economy to recover, and this truthful statement took the world’s breath away. So, this is the real reason that the Euro is climbing back up from $1.20 to $1.29 in the past week plus.
Gold is getting beat up, but is holding its own. It fell again today, and is in the buy range now. If it stays there on Monday, I think it will be time to buy some more. The key price point to watch for gold is $1215. There is a determined seller of gold that comes into the market at that price, and keeps knocking it down. When it breaks above $1215, it will be going up much higher.
Oil/gasoline just move sideways – not knowing what to think about all the shinanigans going on in the Gulf and in politics. You would think that oil would fall as the US in on the precipice of a double dip recession (aka Great Depression 2).
In the news today……
Financial Reform Bill Passes – and YOU will pay for it. You thought this was a bill that would protect you from the excesses of Wall St – right? Well, it does some of that, but the Congress also put a LOT of sneaky things in there that will cost you a lot of YOUR money too. You know you can’t trust those scumbags. Well, here is just one example: Small banks – those banks that didn’t really contribute to the financial meltdown in 2008 – are being overly regulated now, and must spend a lot of money to meet new bureaucratic requirements (like having a “Compliance Officer”). How do you think the banks will pay for these additional costs? Easy!!! They will just raise your charges and lower your services. Happy? If so, write your Congressman/woman and thank them.
If the previous diatribe sounds like a rant – it is. Politicians think they must sneak in everything they ever wanted under the Christmas Tree. They can’t concentrate on the major things they are supposed to be getting done, and just do those things. Remember to vote in November, and vote often.
Tonight’s Dinner Conversation….
The economy stinks – right? Well, why do I say that? Here are the main reasons:
- Unemployment remains high – with no solution in sight.
- Housing continues to looks dismal – and is set to fall in value again.
- Congress continues to spend like a “drunken sailor” – and there is no end in sight. This makes the majority of Americans afraid for their future. They are reducing their spending as they lose confidence in our economy.
Take a look at these graphs, and see what conclusions you reach…..
See how persistent the unemployment rate is? See how we are fed a bunch of lies about how many people are out of work?
The number of Mortgage Applications is falling, and has been for quite awhile. There doesn’t seem to be any respite for the wicked housing market. We had a recent spike in applications as the government interfered with the market by offering a tax break to new home buyers, but this has fallen away quite rapidly, and the downward trend of applications continues. This translates into fewer houses sold. As you know, we are having many more houses coming on the market throught the foreclosure process as record number foreclosures take place.
You can see that foreclosures just don’t look healthy in the US. And, I predict this bad trend will continue throughout 2011.
Retail sales picked up after the 2008 economic crisis as the stimulus money kicked in – BUT, it is now turning negative once more. This is the double dip recession looking at you straight in the face – as retail sales represent the MAJORITY of US GDP.
So, now that you’ve seen some facts, what conclusions do you come to? I want each of you to come to your own conclusions about our economy. With your conclusions, you will be able to protect your assets much better than if you dig a hole, and put your head in it. Don’t hide; the economy will bite you wherever you are.
Here are the last numbers for today:
Dow Jones 30 Industrial – 10,097 (down 261)
10 Year Treasury Bond – 2.94% (down 0.04%)
Euro – $1.2927
Gold – $1188 (down $20)
Oil – $75.83 (down $0.79)
Gasoline – $2.05 (down $0.01)