PLASTICNOMICS

There have been comments that consumer spending has been supplimented from those who stopped making their mortgage payments but make their CREDIT CARD payments on time! PUMPING $Billions into economy....a staggering 20% plus are upside down in their mortgages.

Whatever you want to call this economic environment, it isn't creating many jobs.......when people have jobs secure they can buy houses....lowest rates in generations if not history yet home sales are at depression levels....hardly a situation you can call recovery let alone hardy....no the data is stuck near the worst it was....yet the stock market has made a dramatic move off the lows.

TOO many 90% volume days (another yesterday) to put any value in them anymore, people have lost faith in any fairness or predictability in the stock market....and their choices? near record LOW In yields on bonds.

Gold says inflation, other measures of prices say deflation, perhaps an ugly mix called stagflation is possible.

More brown shoots...mortgage apps down 38% yr/yr.....people are not even looking! and when polled hard to find anyone expecting to buy a home.

Shadow inventory of foreclosed homes and pipeline will keep pressure on prices for some time to come.

last reading of 473,000 claims hardly a sign of recovery......most data gets revised downward but no one pays any attention......what is passing for BULLISH DATA is amazing.....buyer beware....all the while our government and FED play a game of PONZINOMICS.....and threaten the value of our currency

D