2011 2nd half stronger? who's smokin' what?
June economic numbers were a massive blow to the bulls case on economic recovery. Unemployment increases substantially, consumer confidence falls to seven month low, consumer spending in decline, inflation on the rise.
Yes, the impact from the Japan quake on production will be in decline and the global economy should see some positive impact as Japan rebuilds homes, factories and office buildings.
Gas prices are in decline at the moment, but that is a fickle commodity and can double in a nanosecond. So many questions on the stability of supply and the consistency of demand that I am not betting on a second half recovery on this wildcard.
The natural disasters of fire and flood is a bit more than usual and therefore will have a positive economic impact as the North dries out and the South cools, but everyone rebuilds.
US consumers continue to pay-down debt, increase savings and learn to live within their means. Sadly for every positive step the US consumer has taken to become more fiscally responsible (we had no choice, we are unable to dictate to our creditors how much and at what rate we will borrow) the Obama Administration took two steps backward by borrowing and spending with abandon.
Finally the elements of sanity maybe in a position to curtail the explosive wasteful spending spree the Feds have been on. If Congress clues in that the public wants its government to live within its means and there is a limit to the amount of income we consumers are willing to pay them in taxes, Congress may find that hallowed middle ground. The transition from a drunken spending spree to fiscal responsibility is not easy or painless. It is even more painful paying off those debts from the drunken spending spree when you don't even remember what you wasted the money on.
America, we have a tough five years ahead and the sooner we force Congress and the Obama administration start living within our means, the less total pain our economy and citizens will feel.
It is said that the market is a leading indicator and the following chart does not predict a strong second half of 2011.
Use this month-end rally to SELL! I think July is going to be really ugly.
Yes, the impact from the Japan quake on production will be in decline and the global economy should see some positive impact as Japan rebuilds homes, factories and office buildings.
Gas prices are in decline at the moment, but that is a fickle commodity and can double in a nanosecond. So many questions on the stability of supply and the consistency of demand that I am not betting on a second half recovery on this wildcard.
The natural disasters of fire and flood is a bit more than usual and therefore will have a positive economic impact as the North dries out and the South cools, but everyone rebuilds.
US consumers continue to pay-down debt, increase savings and learn to live within their means. Sadly for every positive step the US consumer has taken to become more fiscally responsible (we had no choice, we are unable to dictate to our creditors how much and at what rate we will borrow) the Obama Administration took two steps backward by borrowing and spending with abandon.
Finally the elements of sanity maybe in a position to curtail the explosive wasteful spending spree the Feds have been on. If Congress clues in that the public wants its government to live within its means and there is a limit to the amount of income we consumers are willing to pay them in taxes, Congress may find that hallowed middle ground. The transition from a drunken spending spree to fiscal responsibility is not easy or painless. It is even more painful paying off those debts from the drunken spending spree when you don't even remember what you wasted the money on.
America, we have a tough five years ahead and the sooner we force Congress and the Obama administration start living within our means, the less total pain our economy and citizens will feel.
It is said that the market is a leading indicator and the following chart does not predict a strong second half of 2011.
Use this month-end rally to SELL! I think July is going to be really ugly.
Posted by Bradley Fluetsch at 6/28/2011 6:05 AM 
Categories: Spectulation
Tags: Obama fiscal responsibility budget spending stock market bonds borrowing
Categories: Spectulation
Tags: Obama fiscal responsibility budget spending stock market bonds borrowing
post Awesome. Vraiment apprécié la lecture de votre blog.
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