Jubilee Prosperity

Our hunch is anyone doing their market homework over the weekend may have a considerably different perspective Monday.

The finer details of today’s innocuous -1% GDP report confirm sending Fed fiat and citizen
taxpayer money to Wall Street Corporations disguised as banks
accomplished little so far this year except planning to build an obsolete GS
NYSE Euro superstockaccelerator in NJ.

Half the time Mr Market does not correlate with the economy, and this, apparently, may be one of those times.

THE FREE FALL

9.0 percent: The rate at which companies cut spending on equipment and software in the second quarter.

36.4 percent: The rate of such spending cuts in the first quarter.

8.9 percent: The rate at which companies cut spending on plants, office buildings and other structures in the second quarter.

43.6 percent: The rate of such spending cuts in the first quarter.

7 percent: The drop in exports in the second quarter.

29.9 percent: The drop in exports in the first quarter.

Add these up and we have a 36.9% drop in exports, a 45.4% drop in
equipment and software and a 52.5% drop on spending on plants, office
buildings and structures so far in 2009. You would be a TV bobble/bubblehead
to miss the implosion and deflationary implications for commodities, gold, oil and other assets
including stocks…

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This entry was posted on Saturday, August 1st, 2009 at 5:55 am and is filed under Financial Planning. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.