48 hours later, Monday’s massive 936 point rally in the DOW has been all but forgotten. Reality came back like a sledgehammer this morning and the September Consumer Spending numbers were released. As expected they were awful. But it was worse. They weren’t awful; they were downright terrible. Even the cooked numbers were ugly. Whatever the degree of aesthetics they were or weren’t lacking, the take home message is pretty clear: The consumer has (at least for now) stopped borrowing and spending money. It’s about time.
World markets responded by selling off almost to the magnitude of Monday’s rally. The DJ Wilshire 5000 lost its newly found trillion from Monday. The NASDAQ and S&P were no better. If things get too much worse, we will not be able to call it just a bear market anymore. Maybe something like bear-squared or double-bear. Maybe grizzly bear best describes what is going on right now.
All kidding aside, our leaders still haven’t got it. They need to get the consumer’s balance sheet fixed. Short of that, all else will be in vain. If they’re going to create the money and trash our Dollar, why not at least use it to the partial benefit of American citizens. Give each American $50,000 and mandate at least three quarters of it be used for paying off debt. If you have no debt, then at least half must be invested (not limited to stocks). This action would ruin the dollar , but at least it would help fix the problem. And American households would be in a better spot in terms of supporting genuine growth moving forward.
[...] Original post by Indian Movies | Indian Music | Indian Videos | Indian Sports | Indian Politics | India HOT | Hindi F… [...]
[...] [Technorati] Tag results for commodities wrote an interesting post today onHere’s a quick excerpt 48 hours later, Monday’s massive 936 point rally in the DOW has been all but forgotten. Reality came back like a sledgehammer this morning and the September Consumer Spending numbers were released. As expected they were awful. But it was worse. They weren’t awful; they were downright terrible. Even the cooked numbers were ugly. Whatever the degree of aesthetics they were or weren’t lacking, the take home message is pretty clear: The consumer has (at least for now) stopped borrowing and spending [...]
[...] Original post by Indian Movies | Indian Music | Indian Videos | Indian Sports | Indian Politics | India HOT | Hindi F… [...]
[...] Original post by Indian Movies | Indian Music | Indian Videos | Indian Sports | Indian Politics | India HOT | Hindi F… [...]
[...] [Technorati] Tag results for finance wrote an interesting post today onHere’s a quick excerpt 48 hours later, Monday’s massive 936 point rally in the DOW has been all but forgotten. Reality came back like a sledgehammer this morning and the September Consumer Spending numbers were released. As expected they were awful. But it was worse. They weren’t awful; they were downright terrible. Even the cooked numbers were ugly. Whatever the degree of aesthetics they were or weren’t lacking, the take home message is pretty clear: The consumer has (at least for now) stopped borrowing and spending [...]
[...] Original post by Indian Movies | Indian Music | Indian Videos | Indian Sports | Indian Politics | India HOT | Hindi F… [...]