Economic Reports 07/27/09
Existing Home Sales June
+3.6% at 4.89M; Yoy -0.2%; Bad news… Price Yoy -15.4%; Good news… Inventory Yoy -15% at 9.4 vs 11 months.
Initial Jobless Claims July 18
+30K at 554K; 4 week MA -19K at 566K; Continuing claims at -88K at 6.225M; 4 week MA -132K at 6.541M.
States with an increase >1K shows major carnage in the report.
The Nattering One muses...
Treasuries are the cheapest relative to inflation since 1994. The real yield, or the difference between rates on government securities and advertised inflation...
for 10-year notes was 5.10% today, compared with an average of 2.74% over the past 20 years.
The highest inflation-adjusted yields in 15 years are helping as the U.S. prepares to sell $115 billion of notes this week.
Concurrent with US indices rallying... the MSCI Asia Pacific Index has rallied 53% from a five-year low on March 9th.
Are investors responding to a real rebound in growth or the illusion of recovery fueled by public spending?
Is massive government bailout funding leading to new asset bubbles that look like economic growth?
Loose money policies may be doing more to fuel bubbles that merely provide the illusion of economic recovery.
What investors are missing is that once the high from these knee jerk bailout actions wears off...
there may not be enough largess in the pipeline to offer stimulus addicted investors another fix.
As long as there is mounting unemployment and stagnant wages, these policies will leave economies more vulnerable to further market problems.
+3.6% at 4.89M; Yoy -0.2%; Bad news… Price Yoy -15.4%; Good news… Inventory Yoy -15% at 9.4 vs 11 months.
Initial Jobless Claims July 18
+30K at 554K; 4 week MA -19K at 566K; Continuing claims at -88K at 6.225M; 4 week MA -132K at 6.541M.
States with an increase >1K shows major carnage in the report.
The Nattering One muses...
Treasuries are the cheapest relative to inflation since 1994. The real yield, or the difference between rates on government securities and advertised inflation...
for 10-year notes was 5.10% today, compared with an average of 2.74% over the past 20 years.
The highest inflation-adjusted yields in 15 years are helping as the U.S. prepares to sell $115 billion of notes this week.
Concurrent with US indices rallying... the MSCI Asia Pacific Index has rallied 53% from a five-year low on March 9th.
Are investors responding to a real rebound in growth or the illusion of recovery fueled by public spending?
Is massive government bailout funding leading to new asset bubbles that look like economic growth?
Loose money policies may be doing more to fuel bubbles that merely provide the illusion of economic recovery.
What investors are missing is that once the high from these knee jerk bailout actions wears off...
there may not be enough largess in the pipeline to offer stimulus addicted investors another fix.
As long as there is mounting unemployment and stagnant wages, these policies will leave economies more vulnerable to further market problems.
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