The Economy Guy

Stocks soared on the great Consumer Spending news.

Bonds rallied to lower interest rates as FED Chair Bernanke said he was going to keep interest rates low as long as necessary to start the economy growing.

The Dollar moved all over the place, but ended going sideways.

Gold hit an ALL TIME HIGH again today as the top must be getting nearer to today’s prices as Gold didn’t consolidate its last $50 gain.

Oil and gasoline both rallied from their recent trough lows and are now in the middle of the trough.

In the news today…..

Retail Sales – rose 1.4% in October.  The largest component was auto sales – a surprise to me.  September’s retail sales were revised downwards by the government, and that could have boosted October.  Anyway this is just plain good news for the economy.

GM – plans to repay all the money it owes the US Government by mid 2011.  The catch??  The intend to pay the money back with additional money from the US Government.  Does this sound like double speak to you?  It does to me.

GM Germany – (that’s Opel) is now hearing from the German Economics Minister that since they dropped their deal to sell Opel to Magna, the German government will not be giving Opel (that’s GM) any government money to restructure.  Sounds like the US taxpayer will take it in the pants again.

GM Reports - $1.2B third quarter loss, and call this progress.  Enough said.

Millions of taxpayers – will owe part of their tax credit back to the government in 2010.  This is because the $400 (single) and $800 (couple) tax credit was received more than once if people had more than one job, or both people worked.  This is an unintended consequence of this program, as more money went out in 2009 and will be clawed back next year – so it will have a NEGATIVE effect in 2010.

Here are the last numbers for today:
Dow Jones 30 Industrial – 10,407 (up 137 points)
10 Year Treasury Bond – 3.33% (down 0.10%)
Euro – $1.4976
Gold – $1139 (up $23)
Oil – $78.85 (up $2.50)
Gasoline – $1.99  (up $0.07)