Wednesday, June 17, 2009

Economy looking very rosy with news reports


Consumer prices rose 0.1 percent, less than forecast

Oil, gasoline, falls on bigger supply gain

Current account trade deficit drops to $101.5B

In February, Marketing Sociologist announced the economy has turned around. Look at the headlines above. Allow me to explain. Oil falling is good for the economy. Trade deficit drops – you know when you owe money it is always good to owe less and less. That should be self explanatory.


Lastly, this one surprises me. With all the blank check writing in the past six month by both President George Bush and President Barack Obama, I’ve though inflation would rise. If you look at consumer prices inflation, this headline shows inflation rising at slightly more than one percent (!) for the year. Hasn’t done that since the 1950s.


Yesterday it was announced home starts are up - drastically by leaps and bounds. If you look at the Dow, from 1915 to 1929 it witnessed probably its greatest growth in history. We should be following this trend.

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