Loading ...We seem to be set up for another slight correction this morning. The last 4 ended up on the day however, so the outcome is to be determined. The big stories today are home prices going up in April, consumer sentiment falling, Bank of America shrinking offices, and GE earnings.
The quickest way to feel bullish about the US economy is to read Bloomberg’s story on Lithuanian economy shrinking 22.4% in second quarter and South Africa’s unemployment rate of 23.6%. As long as the global commodities are traded in USD and the world reserve currency is the USD, we have little to fear. They also have a story on how the housing price climbed in April from May (go figure, artificial low rates + peak housing season = higher prices). The real test for how healthy housing is will be this winter or next spring when rates are going up.
CBS top story is Bank of America trimming down 10% of their branches (what’s that, another 3000 folks unemployed?). Personally, I think that’s a move on the right direction. In 50 years, maybe all banking will be done online on online brokers/bank hybrids.
CNBC and Forbs top story is about the stock market slipping set for a weak opening. Jeez, might as well skip those two. They are always telling me what I already know, sigh.
There is a good read on Wind energy at Reuters, someone trying hard to pump the green bubble. I really like the idea of wind farms out in the middle of the ocean. The key for success however will be location location location. You want to place them where you have strong enough wind too make energy but away from hurricane zones (equator).
The VIX started with a pop but is quickly dropping; it is only slightly higher this am. The USD is up against most currencies (gold, oil and market down) so the double edge sword is still slicing. However, base metals are heading higher today, that’s a good sign for the economy.
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