Dangers to Human Virtue
Life, Liberty, & the Pursuit of Happiness
Sunday, January 22, 2012
Wednesday, December 28, 2011
Tuesday, December 27, 2011
Social Justice
What do you call it when someone steals someone else's money secretly? Theft. What do you call it when someone takes someone else's money openly by force? Robbery. What do you call it when a politician takes someone else's money in taxes and gives it to someone who is more likely to vote for him? Social Justice.
---- Thomas Sowell
Life, Liberty, & the Pursuit of Happiness
Wednesday, September 14, 2011
Wednesday, August 31, 2011
Higher Taxes Coming?
The confidence that the American people have in Obama is falling fast & furious.
Life, Liberty, & the Pursuit of Happiness
Tuesday, August 30, 2011
Businesses hire based on demand
MERRY MEDIOCRITY
By Charles Payne, CEO & Principal Analyst
8/30/2011 9:29:55 AM Eastern Time
"People who are unable to motivate themselves must be content with mediocrity."
-Andrew Carnegie
Well, there is one place where mediocrity can be the motivation, and that's the stock market. Of course, when the market has been flushed out of weak sisters and wobbly-kneed uncles, it is much easier to get the kind of session witnessed yesterday. What got the market going?
>; The Fed is still serving as a backstop that will try to jawbone stocks higher or resort to manipulation.
>; Consumers are back, albeit at the expense of savings, but who cares.
>; Valuations are dirt cheap and smart players tripped over each other for a piece of the action.
>; We faced down a once-in-century hurricane and earthquake so what is a little market risk.
There are many reasons for the market being higher because stocks were, and still are, oversold. The best reason, albeit somewhat disingenuous, is the expectations game. Expectations are so low that it means even if we miss on things like the ISM Manufacturing number or the jobs report, the downside will be limited. On the other hand, clearing those low hurdles could have an Olympian impact on the mood of the market and investors. I think the Fed will get in the game in several ways, and if there is a so-called Plunge Protection Team (White House operation to support the stock market) then it's going to get in gear, too. But, there is also another thing in favor of the market.
It's the only game in town to make money. Sure, gold has been amazing and is clearly a smart hedge even at these levels. But, Treasury bond yields are just too paltry in a world where so many people have to play catch up. I find it hard to imagine that a 65 year old person with less than $500,000 in liquid assets can settle for 2% for the next thirty years. But, there is enough fear to keep people in that foxhole a little longer. I will say with the appointment of Alan Krueger to head up the Council of Economic Advisers that scintilla of hope there could be even a slight altering of the grand game plan was dashed. This is another academic that believes in spending a lot of money, gained through a lot of taxes, to go to stuff like alterative energy.
The labor economist is something of a renaissance man, an expert on terrorism, taxes, and happiness, among other things. The problem is he is yet another guy with theories instead of dirty hands from doing the kind of work that America needs. I'm talking grassroots jobs that grow and along the way, enlarge the wealth of communities and the country.
I would have preferred someone that took risks, bet it all, and won. That person's victory and riches triggered a virtuous circle and he/she could bring that firsthand knowledge to the job. Instead, we are going to hear about the virtues of higher minimum wage and how great alternative energy is for the nation and economy. Don't get me wrong, there is a place for academics in searching for solutions.
Yesterday I had Dr. Burt Folsom from Hillsdale College on my 2PM Fox Business Show, and he made great points, many of them from his book: "The Myth of the Robber Barons." He pointed out that the first three railroads in this country were subsidized by the government, leading to massive waste and bankruptcy for all, while a fourth non-subsidized railroad survived. We looked at five alternative energy companies that have gotten millions of taxpayer dollars and visits from President Obama or Vice President Biden. The best performing name was down only 63% from its two-year high. Pull up a chart of these names and ask should they really get your hard earned money?
>; A123 (AONE)
>; Advanced Battery (ABAT)
>; Ener1 (HEV)
>; Evergreen Solar (ESLR)
>; Cree research (CREE)
As we get closer to the latest jobs speech more stuff is being leaked. It looks like the centerpiece of the program is renovating thousands of public schools and tax breaks for new hires. Who can say no to spending on public schools? The heartstrings and finger pointing are all wrapped in a neat bow. Of course, it would be something involving unions and government. I'd much prefer we renovate the insides of public schools beginning with curriculum, bogus tenure, and low expectations. As a sustained job creator this idea gets an F+. Sure, there will be a lot of money floating around and a big chunk will make it back into the Obama Victory Fund, but it's not going to trigger real economic growth.
On the topic of tax breaks for new hires, it's not going to work. Businesses hire based on demand, and save for a few more mall jobs to absorb those public school retrofitting checks no business is going to take the bait. With the new healthcare law kicking in and triggering devastating new taxes, businesses will be looking to save money not hire idle workers. (By the way, even the US Postal Service is getting wise to paying people not to work. While I can't vouch for the speed at the USPS, so far paying workers for "standby time" is down to $4.3 million in the first half of 2011 from $30.9 million in 2009. The story broke in the Washington Post, and it seems to me because of so many looming layoffs such largess, which was heavily abused, can no longer be tolerated or encouraged.)
Fox News is reporting the green jobs program in Seattle is being called a bust after 16 months and $20.0 million; it created just 14 jobs. The program was designed to weatherize homes, but has only been able to upgrade three homes so most of the jobs are administrative. Apparently this is the norm for the Department of Energy, which has allocated $508.0 million to 41 states for its Better Buildings Neighborhood Program. That investment has yielded 600 jobs created or retained, which means it cost taxpayers $846,666 per job.
One year into the program 9,000 homes have had energy audits and some type of upgrade. The goal is 150,000 homes by 2013 to save consumers $65.0 million annually
(Those supposed savings will go away when utilities are forced to close down coal plants...but that's another story.)
The Expectations Game- No Winners
I don't think the market is excited at all about the jobs speech, and that might be the best news because it's all about expectations and low hurdles.
Back to the market, I love the action in part because stuff that was stuck in the mud acted much better. US Steel (X) had a great session, banks rebounded, and retailers acted well, too. But, make no mistake, on weeks that lead up to the jobs report there is normally one big down session. In fact, a healthy pullback sometime between now and Friday will enhance low expectations, thereby building up any kind of beat on jobs.
This game of expectations goes beyond Wall Street and into so many parts of our everyday lives. Washington DC has made the shift from bold promises of sending a man to the moon and creating full employment to the point that a year from now our President will run for reelection on a platform that unemployment is only 8.5% as compared to "almost 10%", and that message will resonate with those that forgot how we used to demand more. I'm living through this game right now with my power company. Our power went out on Sunday and we were told it would take a week to get it back on.
Well, the power came back last night, and we were relieved. Then this morning the power went out again. I have a feeling they are actually rationing power, rotating it among different homes while they play the game of expectations. I'm supposed to be thrilled the company I pay money to each month is half-ass doing their job. With about a week's advance notice this shouldn't be a problem and no one in the modern world, let alone America, should be without electricity for a week, even intermittingly. But, it does remind us to be grateful and never relax or take anything for granted.
Today's Session
The market is going to give back gains at the open, and that's to be expected. The key now is to hold intraday lows from last week and build a new base of support. We sent out profit alerts on three ideas yesterday in part to this wild volatility and the need to be nimble and always have cash. At some point, I will ride out the gyrations for larger, longer term gains but am not sure the risk/reward dynamic has changed enough just yet.
Charles Evens, a voting member of the FOMC, said this morning he "would favor more accommodation" because we would be worse off without QEII. He says commodities are up on demand, not the Fed bludgeoning the dollar. His comments have sent gold soaring this morning but oddly added pressure on stocks. Maybe the sobering reality of the true state of the economy is mitigating the notion of more upward manipulation of the stock market...for the moment.
Life, Liberty, & the Pursuit of Happiness
By Charles Payne, CEO & Principal Analyst
8/30/2011 9:29:55 AM Eastern Time
"People who are unable to motivate themselves must be content with mediocrity."
-Andrew Carnegie
Well, there is one place where mediocrity can be the motivation, and that's the stock market. Of course, when the market has been flushed out of weak sisters and wobbly-kneed uncles, it is much easier to get the kind of session witnessed yesterday. What got the market going?
>; The Fed is still serving as a backstop that will try to jawbone stocks higher or resort to manipulation.
>; Consumers are back, albeit at the expense of savings, but who cares.
>; Valuations are dirt cheap and smart players tripped over each other for a piece of the action.
>; We faced down a once-in-century hurricane and earthquake so what is a little market risk.
There are many reasons for the market being higher because stocks were, and still are, oversold. The best reason, albeit somewhat disingenuous, is the expectations game. Expectations are so low that it means even if we miss on things like the ISM Manufacturing number or the jobs report, the downside will be limited. On the other hand, clearing those low hurdles could have an Olympian impact on the mood of the market and investors. I think the Fed will get in the game in several ways, and if there is a so-called Plunge Protection Team (White House operation to support the stock market) then it's going to get in gear, too. But, there is also another thing in favor of the market.
It's the only game in town to make money. Sure, gold has been amazing and is clearly a smart hedge even at these levels. But, Treasury bond yields are just too paltry in a world where so many people have to play catch up. I find it hard to imagine that a 65 year old person with less than $500,000 in liquid assets can settle for 2% for the next thirty years. But, there is enough fear to keep people in that foxhole a little longer. I will say with the appointment of Alan Krueger to head up the Council of Economic Advisers that scintilla of hope there could be even a slight altering of the grand game plan was dashed. This is another academic that believes in spending a lot of money, gained through a lot of taxes, to go to stuff like alterative energy.
The labor economist is something of a renaissance man, an expert on terrorism, taxes, and happiness, among other things. The problem is he is yet another guy with theories instead of dirty hands from doing the kind of work that America needs. I'm talking grassroots jobs that grow and along the way, enlarge the wealth of communities and the country.
I would have preferred someone that took risks, bet it all, and won. That person's victory and riches triggered a virtuous circle and he/she could bring that firsthand knowledge to the job. Instead, we are going to hear about the virtues of higher minimum wage and how great alternative energy is for the nation and economy. Don't get me wrong, there is a place for academics in searching for solutions.
Yesterday I had Dr. Burt Folsom from Hillsdale College on my 2PM Fox Business Show, and he made great points, many of them from his book: "The Myth of the Robber Barons." He pointed out that the first three railroads in this country were subsidized by the government, leading to massive waste and bankruptcy for all, while a fourth non-subsidized railroad survived. We looked at five alternative energy companies that have gotten millions of taxpayer dollars and visits from President Obama or Vice President Biden. The best performing name was down only 63% from its two-year high. Pull up a chart of these names and ask should they really get your hard earned money?
>; A123 (AONE)
>; Advanced Battery (ABAT)
>; Ener1 (HEV)
>; Evergreen Solar (ESLR)
>; Cree research (CREE)
As we get closer to the latest jobs speech more stuff is being leaked. It looks like the centerpiece of the program is renovating thousands of public schools and tax breaks for new hires. Who can say no to spending on public schools? The heartstrings and finger pointing are all wrapped in a neat bow. Of course, it would be something involving unions and government. I'd much prefer we renovate the insides of public schools beginning with curriculum, bogus tenure, and low expectations. As a sustained job creator this idea gets an F+. Sure, there will be a lot of money floating around and a big chunk will make it back into the Obama Victory Fund, but it's not going to trigger real economic growth.
On the topic of tax breaks for new hires, it's not going to work. Businesses hire based on demand, and save for a few more mall jobs to absorb those public school retrofitting checks no business is going to take the bait. With the new healthcare law kicking in and triggering devastating new taxes, businesses will be looking to save money not hire idle workers. (By the way, even the US Postal Service is getting wise to paying people not to work. While I can't vouch for the speed at the USPS, so far paying workers for "standby time" is down to $4.3 million in the first half of 2011 from $30.9 million in 2009. The story broke in the Washington Post, and it seems to me because of so many looming layoffs such largess, which was heavily abused, can no longer be tolerated or encouraged.)
Fox News is reporting the green jobs program in Seattle is being called a bust after 16 months and $20.0 million; it created just 14 jobs. The program was designed to weatherize homes, but has only been able to upgrade three homes so most of the jobs are administrative. Apparently this is the norm for the Department of Energy, which has allocated $508.0 million to 41 states for its Better Buildings Neighborhood Program. That investment has yielded 600 jobs created or retained, which means it cost taxpayers $846,666 per job.
One year into the program 9,000 homes have had energy audits and some type of upgrade. The goal is 150,000 homes by 2013 to save consumers $65.0 million annually
(Those supposed savings will go away when utilities are forced to close down coal plants...but that's another story.)
The Expectations Game- No Winners
I don't think the market is excited at all about the jobs speech, and that might be the best news because it's all about expectations and low hurdles.
Back to the market, I love the action in part because stuff that was stuck in the mud acted much better. US Steel (X) had a great session, banks rebounded, and retailers acted well, too. But, make no mistake, on weeks that lead up to the jobs report there is normally one big down session. In fact, a healthy pullback sometime between now and Friday will enhance low expectations, thereby building up any kind of beat on jobs.
This game of expectations goes beyond Wall Street and into so many parts of our everyday lives. Washington DC has made the shift from bold promises of sending a man to the moon and creating full employment to the point that a year from now our President will run for reelection on a platform that unemployment is only 8.5% as compared to "almost 10%", and that message will resonate with those that forgot how we used to demand more. I'm living through this game right now with my power company. Our power went out on Sunday and we were told it would take a week to get it back on.
Well, the power came back last night, and we were relieved. Then this morning the power went out again. I have a feeling they are actually rationing power, rotating it among different homes while they play the game of expectations. I'm supposed to be thrilled the company I pay money to each month is half-ass doing their job. With about a week's advance notice this shouldn't be a problem and no one in the modern world, let alone America, should be without electricity for a week, even intermittingly. But, it does remind us to be grateful and never relax or take anything for granted.
Today's Session
The market is going to give back gains at the open, and that's to be expected. The key now is to hold intraday lows from last week and build a new base of support. We sent out profit alerts on three ideas yesterday in part to this wild volatility and the need to be nimble and always have cash. At some point, I will ride out the gyrations for larger, longer term gains but am not sure the risk/reward dynamic has changed enough just yet.
Charles Evens, a voting member of the FOMC, said this morning he "would favor more accommodation" because we would be worse off without QEII. He says commodities are up on demand, not the Fed bludgeoning the dollar. His comments have sent gold soaring this morning but oddly added pressure on stocks. Maybe the sobering reality of the true state of the economy is mitigating the notion of more upward manipulation of the stock market...for the moment.
Life, Liberty, & the Pursuit of Happiness
Pending Homes Sales
Gmail - WStreet Market Commentary - larrynosneh@gmail.com:
WHAT THE MARKET IS SEEING...THIS WEEK
By WSS Research Desk
8/29/2011 2:15:09 PM Eastern Time
Doesn't it feel like forever ago when the markets were once again freefalling in a similar fashion to the 2008 financial crisis? Well, in actuality, those strong moves to the downside that broke the bullish momentum from Jackson Hole 2010 were only a couple of weeks ago. My oh my how short-term the mindset of investors are these days, or shall I say the mindset of traders.
The market enters this week clinging to a couple of hopes. Hope one is that the August jobs report will surprise to the downside on Friday, spurring the Fed back into the role of Superman at its soon to be super hyped two-day September policy meeting. Hope two is that economic data in August represents a trough in the string of bad headlines prints, such as in the Philly Fed and consumer confidence measures. For if we have an actionable Fed ready to step back into the game of creating moral hazard, plus a slow climb from the summer abyss of bad economic data, it could set the stage for a rally into the end of the year like so many economists continue to anticipate.
So with this as a backdrop, market bulls prepare to enter September with the following fun facts, in addition to the macro arsenal at their disposal:
* The S&P 500'S trailing-twelve month P/E ratio is now hovering around 12.9 times. That's 3.5% less than the average multiple during the 10 contractions since 1949, and a level last reached in 1982.
* At 1,176.80, the S&P 500 is trading at a P/E ratio 10.8 times forward earnings estimates. For the P/E ratio to reach its five-decade average of 16.4 times without shares appreciating, earnings would have to fall to about $71.76 a share, 22% below the last 12 months. Obviously, the bulls contend that such a sizable retrenchment in corporate earnings will not surface due to share buyback activity, emerging market growth, and continued mindfulness by executives on operating expenses.
Market Breathes Sigh of Relief
By: David Silver, Equity Research Analyst
In the pre-market, stocks were poised for a strong open on the back of the less than horrible results from Hurricane Irene. Insurers were among the biggest winners as the massive flooding and wind damage that was feared never really materialized (at least not in the New York area). There were plenty of complaints this morning on the subway getting to work about how slow the MTA was bouncing back, but I am still in the rather be safe than sorry camp. It may have closed businesses for two days and caused some financial hardships, but at the end of the day, it's better to be wrong and have no one to save, then to be wrong and have lives at risk. I left New Orleans hours before Hurricane Katrina hit, and even that Category 4/5 storm didn't generate the type of news that Hurricane Irene caused. Maybe it is just because it was New York and the super-city that is the Northeast, but it also seems that we learned from our mistakes. No one wants to see a replay of Katrina (and if you are in the New York area, no one wants to see a replay of the blizzard that shut down the city for two days). Home Depot (HD), Lowe's (LOW), and some grocery stores definitely benefited from the storm as plywood and batteries were sold out across the Northeast. I ventured into a grocery store Saturday afternoon to see how bare the shelves were. While the grocery store near my apartment is never one to have shelves that were overflowing, the chaos that I walked into blew my mind. I really wish I had taken a picture of it on my phone. There were people fighting over the few remaining bottles of water, one of which was already open and splashing everyone in a ten foot radius. I found it amusing, and now, after the storm, I really hope the people that were fighting over the bottle of water can learn something.
Pending Homes Sales
By: David Urani, Research Analyst
The Pending Home Sales Index, a forward looking housing indicator, decreased by 1.3% in July versus June. Expectations are already at rock bottom, so the result won't faze investors too much; it was slightly worse than the -1.0% consensus estimate. The West has put in a decent run of four months of increases in a row, although one has to think that a lot of these are foreclosures or short sales, which there is an abundance of in California, Arizona, and Nevada. Realtors are citing very high mortgage lending standards as a major detriment to getting sales done.
Techs Make a Strong Start to the Week
By Carlos Guillen, Research Analyst
Shares of companies in the technology sector are continuing to make nice gains today after experiencing lots of volatility last week. What appears to be driving technology shares this morning is the rather encouraging consumer spending data. Earlier today the Bureau of Economic Analysis reported that Personal consumption expenditures (PCE) increased by 0.8%, higher than the Street's consensus estimate of 0.5%. Given that consumer spending represents about 70% of GDP and that it also significantly drives electronics sales, tech shares are responding quite positively to the favorable news, and as a result the Philadelphia Semiconductor Index (SOX) is up close to 3%.
Shares of Micron (MU) are up, tracking gains made by its Asian peers on a rise in spot prices of DRAM memory chips. Spot prices for DDR3 2 Gigabit type DRAM memory chips rose to as much as $1.04 on the DRAM exchange on Monday after increasing 3.6% on Friday.
Youku.com (YOKU) shares were up 7% at $24.95 after the Chinese video-sharing website announced an online distribution agreement for rights to the DreamWorks Animation KungFu Panda franchise films in mainland China. The deal marks the first time DWA titles will be made available through an online platform in China.
Life, Liberty, & the Pursuit of Happiness
WHAT THE MARKET IS SEEING...THIS WEEK
By WSS Research Desk
8/29/2011 2:15:09 PM Eastern Time
Doesn't it feel like forever ago when the markets were once again freefalling in a similar fashion to the 2008 financial crisis? Well, in actuality, those strong moves to the downside that broke the bullish momentum from Jackson Hole 2010 were only a couple of weeks ago. My oh my how short-term the mindset of investors are these days, or shall I say the mindset of traders.
The market enters this week clinging to a couple of hopes. Hope one is that the August jobs report will surprise to the downside on Friday, spurring the Fed back into the role of Superman at its soon to be super hyped two-day September policy meeting. Hope two is that economic data in August represents a trough in the string of bad headlines prints, such as in the Philly Fed and consumer confidence measures. For if we have an actionable Fed ready to step back into the game of creating moral hazard, plus a slow climb from the summer abyss of bad economic data, it could set the stage for a rally into the end of the year like so many economists continue to anticipate.
So with this as a backdrop, market bulls prepare to enter September with the following fun facts, in addition to the macro arsenal at their disposal:
* The S&P 500'S trailing-twelve month P/E ratio is now hovering around 12.9 times. That's 3.5% less than the average multiple during the 10 contractions since 1949, and a level last reached in 1982.
* At 1,176.80, the S&P 500 is trading at a P/E ratio 10.8 times forward earnings estimates. For the P/E ratio to reach its five-decade average of 16.4 times without shares appreciating, earnings would have to fall to about $71.76 a share, 22% below the last 12 months. Obviously, the bulls contend that such a sizable retrenchment in corporate earnings will not surface due to share buyback activity, emerging market growth, and continued mindfulness by executives on operating expenses.
Market Breathes Sigh of Relief
By: David Silver, Equity Research Analyst
In the pre-market, stocks were poised for a strong open on the back of the less than horrible results from Hurricane Irene. Insurers were among the biggest winners as the massive flooding and wind damage that was feared never really materialized (at least not in the New York area). There were plenty of complaints this morning on the subway getting to work about how slow the MTA was bouncing back, but I am still in the rather be safe than sorry camp. It may have closed businesses for two days and caused some financial hardships, but at the end of the day, it's better to be wrong and have no one to save, then to be wrong and have lives at risk. I left New Orleans hours before Hurricane Katrina hit, and even that Category 4/5 storm didn't generate the type of news that Hurricane Irene caused. Maybe it is just because it was New York and the super-city that is the Northeast, but it also seems that we learned from our mistakes. No one wants to see a replay of Katrina (and if you are in the New York area, no one wants to see a replay of the blizzard that shut down the city for two days). Home Depot (HD), Lowe's (LOW), and some grocery stores definitely benefited from the storm as plywood and batteries were sold out across the Northeast. I ventured into a grocery store Saturday afternoon to see how bare the shelves were. While the grocery store near my apartment is never one to have shelves that were overflowing, the chaos that I walked into blew my mind. I really wish I had taken a picture of it on my phone. There were people fighting over the few remaining bottles of water, one of which was already open and splashing everyone in a ten foot radius. I found it amusing, and now, after the storm, I really hope the people that were fighting over the bottle of water can learn something.
Pending Homes Sales
By: David Urani, Research Analyst
The Pending Home Sales Index, a forward looking housing indicator, decreased by 1.3% in July versus June. Expectations are already at rock bottom, so the result won't faze investors too much; it was slightly worse than the -1.0% consensus estimate. The West has put in a decent run of four months of increases in a row, although one has to think that a lot of these are foreclosures or short sales, which there is an abundance of in California, Arizona, and Nevada. Realtors are citing very high mortgage lending standards as a major detriment to getting sales done.
Techs Make a Strong Start to the Week
By Carlos Guillen, Research Analyst
Shares of companies in the technology sector are continuing to make nice gains today after experiencing lots of volatility last week. What appears to be driving technology shares this morning is the rather encouraging consumer spending data. Earlier today the Bureau of Economic Analysis reported that Personal consumption expenditures (PCE) increased by 0.8%, higher than the Street's consensus estimate of 0.5%. Given that consumer spending represents about 70% of GDP and that it also significantly drives electronics sales, tech shares are responding quite positively to the favorable news, and as a result the Philadelphia Semiconductor Index (SOX) is up close to 3%.
Shares of Micron (MU) are up, tracking gains made by its Asian peers on a rise in spot prices of DRAM memory chips. Spot prices for DDR3 2 Gigabit type DRAM memory chips rose to as much as $1.04 on the DRAM exchange on Monday after increasing 3.6% on Friday.
Youku.com (YOKU) shares were up 7% at $24.95 after the Chinese video-sharing website announced an online distribution agreement for rights to the DreamWorks Animation KungFu Panda franchise films in mainland China. The deal marks the first time DWA titles will be made available through an online platform in China.
Life, Liberty, & the Pursuit of Happiness
Monday, August 29, 2011
TERM LIMITS
TERM LIMITS
Barney Frank is the poster child for term limits in Congress.
2000: Frank called the concerns about Fannie and Freddie “overblown” claiming there was no federal liability whatsoever.
2002: Frank said “I do not regard Fannie Mae and Freddie Mac as problems. I regard them as assets.”
2003: Frank opposed reforms saying he did not “regard Fannie and Freddie as problems.”
2004: With Fannie’s accounting scandal, Frank again insisted they were not in any crisis. “Even if the two went belly-up, he said, I think Wall Street will get over it.”
2008: Frank said the losses and foreclosures was the fault of Wall Street. “The private sector got us into this mess….the government has to get us out of it.”
2010: Frank is now supports abolishing Fannie and Freddie – a little late on seeing the problem.
Fresh eyes on a problem can usually see something that someone close to the problem overlook. Barney Frank obviously overlooked the problem year after year. If you feel this is an important issue please forward this email along with your own comments to your respective Representative/Senator and ask them for their opinion.
ABOLISH
I am also in favor of abolishing Fannie Mae and Freddie Mac along with the retirement of old worn out politicians.
Personal Income & Spending
POST IRENE, THE WORLD LOOKS SUNNIER...FOR NOW
By Charles Payne, CEO & Principal Analyst
8/29/2011 9:51:09 AM Eastern Time
Personal Income and Spending
Personal income climbed 0.3% in July, which was in line with some estimates, and slightly below other consensus readings. On the other hand, personal spending surged by 0.8%, which is well above the 0.5% the Street expected. Spending came at the expense of savings, which tumbled to 5.0% from 5.5% month to month.
Friday sees the latest on employment, and it's one of those deals where the number could be miserable but also beat the Street. One thing for sure is our employment situation is dismal, especially among young adults and men of all ages. Only 48.8% of the youth (16 to 24) are employed, this is the lowest percentage ever, since this series has been kept. Back in 1969, more than 95% of men ages 24 to 55 worked; today, that number has plunged to 81.0%. So any kind of "positive" could move the market needle, although we need robust numbers to turn the country around.
Life, Liberty, & the Pursuit of Happiness
By Charles Payne, CEO & Principal Analyst
8/29/2011 9:51:09 AM Eastern Time
Personal Income and Spending
Personal income climbed 0.3% in July, which was in line with some estimates, and slightly below other consensus readings. On the other hand, personal spending surged by 0.8%, which is well above the 0.5% the Street expected. Spending came at the expense of savings, which tumbled to 5.0% from 5.5% month to month.
Life, Liberty, & the Pursuit of Happiness
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