Revision to fourth quarter GDP

Posted by Jason Apollo Voss on Feb 26, 2010 in Blog | 0 comments You may hear in the business media this morning that fourth quarter GDP was revised upward from an initial reading to 5.7% to 5.9%.  While the figure was revised up, all of the increase came from components other than consumer spending.  In fact, at the time of the initial posting of the figure I said that GDP growth that simply represented manufacturers making goods in anticipation of consumer...
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Consumer confidence in freefall

Posted by Jason Apollo Voss on Feb 23, 2010 in Blog | 0 comments Wow!  The Conference Board reported this morning that its calculation of February Consumer Confidence plunged a whopping 10.5 points, down to 46.0.  This is the lowest level since April 2009.  This mark is dramatically lower than the level expected by economists of 54.8. Analysis: Well I have been saying it on the blog now for quite awhile and in many postings: “the asymmetry of market...
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Worker strikes in France and Germany

Posted by Jason Apollo Voss on Feb 23, 2010 in Blog | 0 comments Yesterday saw numerous worker strikes taking place in the EU’s two most important economies: France and Germany.  In France workers of oil giant, Total, went on strike.  While in Germany employees of the airline Lufthansa went striking. Analysis: Several weeks ago there was a worldwide fear that spread throughout the bond markets regarding the economic health of Greece.  Additional fear...
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The Iran crisis shifts from hot war to cold war

Posted by Jason Apollo Voss on Feb 20, 2010 in Blog | 0 comments I have not written for awhile about the Iranian nuclear situation.  Mostly this is because nothing has been happening that is worth reporting.  However, the chain of events that have occurred are a strong indication to me that the situation has downgraded from a potential hot war to an evolving cold war.  Here is an update on some of those events as corralled by the major players. The United...
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Inflation figures, Consumer Price Index-style

Posted by Jason Apollo Voss on Feb 19, 2010 in Blog | 0 comments The Department of Labor announced January Consumer Price Index figures.  The CPI is the standard measure of inflation in the U.S. economy.  Specifically the CPI rose 0.2%, however the so-called “core number” which nets out volatile food and energy prices, actually fell by 0.1%.  That marks the first decline in CPI since December of 1982.  Wow! Analysis: Right now CPI is being tracked...
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The Fed raises an interest rate

Posted by Jason Apollo Voss on Feb 19, 2010 in Blog | 0 comments Hello again, Yesterday afternoon the Federal Reserve indicated that it was raising the discount rate (an interest rate it manages) by 0.25%.  The discount rate is the rate that the Federal Reserve charges banks who must borrow money to meet reserve requirements at their institutions.  The Fed emphasized that this move was not the first of more interest rate increases. Analysis: I would expect...
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Ironically good, same-store sales at Wal-Mart were down

Posted by Jason Apollo Voss on Feb 19, 2010 in Blog | 0 comments That massive retail business, Wal-Mart, has reported its same store sales in the fourth-quarter declined 1.6%.  This compares to a fourth quarter increase in consumer-spending of 2%. Analysis: Wal-Mart has bucked the retail trend since the start of the recession and continually reported numbers that bested its rivals.  However, because of the Company’s discount image, many consumers who...
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