70 Words

Surged MoM

01/21/2011

Yes, building permits surged a pleasant 17% MoM in December. But consider that a 1-month wonder due to a builder rush to get applications in ahead of building code changes that were going into effect on 1/1/11 in NY, PA…

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Taxes and Rates

01/20/2011

Ever wonder how much federal tax you pay? The answer (with some assumptions) depends on 4 tax rates. 1st you pay the combined income and payroll tax on earnings. 2nd you pay the corporate tax while you invest your money.…

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Fed unleashes…

01/19/2011

The Fed sees the economy through the lens of a wealth effect stimulating consumer spending. And gains in the stock market have helped achieve that but only 20% of Americans own equity directly. But we all eat and most of…

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Money, Money, Money….

01/18/2011

Despite recent enthusiasm real incomes are under pressure. With the 0.5% hike in the December U.S. CPI, real wages fell 0.4% and have fallen in 3 of the 4 last four months. The pace over the past 6 months is…

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Bulging Balance Sheet

01/18/2011

In the past 3 years, the Federal Reserve’s balance sheet has expanded by $1.5 trillion yet nominal GDP has managed to rise by only $500 billion. Moreover, the U.S. public debt has exploded by about $5 trillion over that same…

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The stock market is Too High

01/14/2011

Measures of investor sentiment are irrational―the bear share in the latest Investor Intelligence poll is down to 19.1% from 20.5% last week. The bull camp is all the way up to 57.3% from 54.5%. Back on Labor Day, the Investor…

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Decennial Census

01/13/2011

From the recently released Decennial Census we see that 7 of the 9 states (AK FL NH NV SD TN TX WA WY) that do not levy an income-tax grew faster than the national average. And, the other two ND…

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Lots of People are Asking Why…

01/12/2011

If profits are booming why aren’t jobs plentiful? Well, from what I can tell the bulk of earnings this cycle were derived offshore and since U.S. companies get “dinged” on earnings they remit home what happens is that the foreign-derived…

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Companies Sad Strategies

01/11/2011

In December’s employment Report, temp agency employment rose 16k, up now for five months in a row, & ended up accounting for about 30% of the total employment growth in the economy last year. Sadly, what was once a good…

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Credit Default Swamps

01/10/2011

Based on my calculations, credit default swaps are trading as if Greece has a 70% chance of defaulting, 50% for Ireland, 40% for Portugal and 30% for Spain. Both Greece and Ireland are paying over 80% of their export revenues…

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