When I looked, the Dow futures were down about a hundred points. And so today we could answer that guillotine question: If 1,965 is decisively breached on the S&P do we need to start retooling our thinking toward this being The Big One…
And then…if it is….then will the S&P 1,740 level hold (no, but that’s only obvious when you look at charts that are inflation-adjusted.
The Friday departure of PIMCO boss Bill Gross for Janus has us wondering if in the next leg down in the market, a large bond outfit might play the role of previous Too Big to Fails including Chrysler and AIG?
But there’s more than HR changes for the market to worry about starting with the personal incomes and expenditure data just out:
“Personal income increased $47.3 billion, or 0.3 percent, and disposable personal income (DPI) increased $35.2 billion, or 0.3 percent, in August, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $57.5 billion, or 0.5 percent. In July, personal income increased $35.9 billion, or 0.2 percent, DPI increased $24.6 billion, or 0.2 percent, and PCE increased $0.5 billion, or less than 0.1 percent, based on revised estimates. Real DPI increased 0.3 percent in August, compared with an increase of 0.1 percent in July. Real PCE increased 0.5 percent, in contrast to a decrease of 0.1 percent.
The key part is the Personal Savings Rate which, last time I remember looking at it, included paying down credit card bills as “savings.”
“Personal outlays — PCE, personal interest payments, and personal current transfer payments — increased $60.4 billion in August, compared with an increase of $3.5 billion in July. PCE increased $57.5 billion, compared with an increase of $0.5 billion.
Personal saving — DPI less personal outlays — was $705.3 billion in August, compared with $730.5 billion in July. The personal saving rate — personal saving as a percentage of disposable personal income — was 5.4 percent in August, compared with 5.6 percent in July.
This is an Economic Miracle of the first order. Personal incomes went up slower than personal spending. Which means? People are still going into debt. Gotta love it.
Off in the background, government is trying to find new ways to stimulate the economy. Q3 first estimate of GDP is due out Thursday, but make no mistake, eventually government will have to rejigger the numbers in order to give more weight to services since our manufacturing base has collapsed to near nothingness.
Housing data tomorrow morning, so a two part report then.
Did I mention the Dow futures are still down 100?
Little Trouble in Big China
Communists in China don’t like what? (Democracy!).
Watch closely as the Obama administration what?
NOTHING!
Where are the sanctions on China? LOL – you’re kidding, right?
We will pass out cookies in Kiev all day long because there is the Donetsk petroleum basin backed up against Russia. Turn a blind eye to Gaza because of massive oil and gas potential off their shores. Bomb ISIS to keep them from getting near Syria’s potentially rich coast. Talk tough on the Arctic because it holds gas.
But beat-down pro-democracy people in China? None of our business as long as China holds us by our (manufacturing and bond sale) nuts.
We’ve just about completed the transition from being a Nation of Principles to a Nation of Trade-Offs. Sad, but indisputable.
“ ?? It’s their Party and they’ll club if they want to…???? ..club if they want to… ????”
Double Dippers?
When I read about how Obama administration employees have time to appear in Hollywood TV serials, I wondered to myself “Isn’t there enough that needs doing in Washington? Are these people just egoistic DOUBLE DIPPERS, or what?” Or is politics just an act?
If they want to be actors or actresses fine. Just quit the government jobs and let’s get some people with focus and skill in to replace them! Everybody wants to be a star….but I thought these folks had real jobs.
Bet me the softball media won’t ask about terms and pay?
TB Exposure
Speaking of media bets, want to place any wagers on whether the mass outbreak of TB in El Paso is related to the influx of people across what used to be our southern border.
Of course, even if it was, the 6Corpmedia would never report it…They don’t want to lose “access” don’tcha know. Money before ethical standards, I always say.
Soft-Headed Liberals Dept.
Don’t want to offend anyone, of course. Next victims don’t count, apparently, so we await the next one…while they twiddle their words.
Zombie Files
A ‘buried alive” case in Greece. Does Greece have national health care? YES.
And Speaking of Health Care
The Swiss want nothing to do with socialist socialized medicine…sticking with the private model…
Fine choice, ain’t it: Corporate profiteers or bungling bureaucrats. That’s a fine choice, for sure. Naw, let’s call it a killer choice which is what it is.
Drought: A Peoplenomics Outlook Coming True
Months back we did an analysis of the California Water Bust and forecast displacement/diaspora from it.
Sure enough, house-by-house water allocations are coming. I figure it’s only a matter of time till some of the public-spirited socialists start impounding private water-well output, too. California is big on “greater good”: that way.
Meantime, look for crop outputs to keep falling and yes, that means bankruptcies galore in the ag sector, but don’t mind me…I’ve just been telling you this was coming for over a year now.