Monday, November 16, 2009

Dollar dives, markets soar...

More of the same today as Bernanke continues to indicate that he'll be accommodative and Asian countries continue to point toward more stimulus. This means more weakness for the dollar and more strength in assets - gold, oil, stocks, etc.

Many looked for an explanation for the rally today in retail sales figures (they were ok, but ex-autos, it was mostly driven by rising gas prices) and GM "only losing a billion dollars". Ignore all of this white noise, it's all about the dollar.

Interesting story in the Telegraph on how China has become the greatest risk to the world economy includes this amazing stat.....

"Realty Track said that 332,000 properties were foreclosed in October alone. More Americans have lost their homes this year than during the entire decade of the Great Depression. A backlog of 7m homes is awaiting likely seizure by lenders."

Obviously, homeowership (I left out the "n" on purpose) is far greater today than it was during the Great Depression, but that's still a stunning statistic.

Overheard today: "Dad, did you ever get that meat fork with a built in thermometer?"

At least locally, I'm surprised by shopping activity. Our reliance on government spending has buffered us during the first wave of the recession. However, talk is building that the Federal government needs to reign in military spending (I interpret that to mean fewer civilian support jobs) and NYS is going to be reeling for a few years. We might not feel the full effect of the recession until 2011 or beyond given the lag time between economic conditions and the government's budget process.


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