Friday, December 11, 2009

GUESS? BETTER THAN EXPECTED

Recently the BDI has turned down amidst all the CNBC chatter of an improving COnsumer committed to spend spend spend, now if this doesn't make sense to you then turn off TV. ROC is diving.
WHEN COMPARING how retail sales are doing, one MUST be reminded and can be seen from this chart, that the % of rise is in direct relationship to previous and that was an historic COLLAPSE in consumer spending. This "bounce" doesn't even come close to reacing the worst it ever got in 2001 and again is coming off VERY WEAK 2008 comparables....so maybe again less worse is good for stocks?

RETAIL SALES BRIEFING.COM link. click on retail sales to get the details.


DO NOT LOOK DOWN at the growth in ADJ M base see here and all this "growth" with a bank machine that isn't lending, this FREE MONEY is probably what is propping up the stock markets. Because we already know the little guy isn't coming back to stocks and who is making up for the 8 million lost souls NOT contributing FUEL into their 401k'S? You get the picture.
If everything is so wonderful why isn't the SPX running past 1120? THE US must float near $150B in notes each month, all we can do is pay interest on debt and will NEVER be able to pay off principal....are we not near insolvency except for the ability to print money AKA with status as Reserve World currency......if you invested in US $'s would you like to see no restraint in their printing and GOV spending?
We have LONG passed that rock N hard place.
D


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