GDP ON TAP

GDP report is due out in the AM, I will be back later on to discuss and maybe this weekend, so check back.

The good news is somewhere down the road the deleveraging will be over and consumer will be in a better place, having paid down or defaulted on debt. Banks do not realize market value and until they do I am not sure they are going to be in much of a mood to lend. FED policy of paying interest on "excess reserves" must end.

I am not hopeful about the prospects for taxes, raising taxes in current environment would not be a net positive. AS we go along, it does give an investor hope that March 2009 lows were THE LOWS......that is certainly possible. What bothers me is that we broke the prior bear mkt lows of 2002.

Now in prior secular (long term) bear market bottoms dividend yields on the SPX 500 were avg 6% and PE ratios in single digits.....will we repeat? sure hope not.

D