Friday Morning June 12, 200
The Gold Bugs are certain the US Dollar will collapse Saturday morning during Neal Cavuto's business show if not this afternoon. Yet gold has not exceeded last year's high. In a sort of Dow non confirmation, silver has moved to a new high for the year but gold refuses to confirm.
Every where I look everything is on sale. The Chevy ad takes up a lot of space but it makes a point, even the Corvette is dealing to get off the lot. It seems a safe bet that GM and Chrysler will continue to be a jobs program not a car company at this pace. Good thing GM is backed by a government printing press to provide cash. GM Chrysler are now the American PEMEX. Mexico has long used their nationalized oil company PEMEX as a featherbed jobs program, foreign investment is prohibited in Mexican oil fields. While this is clearly a populist Yankee Go Home policy, the result is that Mexican oil production is no longer expanding and Mexico will soon cease exporting oil, another disaster for their economy.
Yet car sales refuse to budge above 10 M a year.
Apple just cut the iPhone price in half, yes it faces a host of competitors. Speaking of competitors, will Apple come off its premium pricing policy to challenge the Accer $350 10 inch 2 lb laptop at Costco?
Commodity prices have undergone a dead cat bounce, and yes a pretty darned good one but after the biggest price drop of oil in my lifetime. And a weaker dollar is behind a good bit of that.
Just yesterday a serious banker described lay offs by his better clients in San Antonio which has been spared the unemployment thus far.
Kohl's advertises, Take 30% off EVERYTHING!
Mortgage rates are going up not down, as we have shown yields are up but should receded for about a month. After that rates should soar again. This will simply put more homes on the market. This will make it harder for boomers to sell their homes and move anywhere else. Indeed the pool of potential buyers is smaller for a larger than ever pool of unsold homes. Housing is regional, the empty condos of CA AZ FL NV are tomorrow's apartments. But how will that be handled on the financier's balance sheets, face it, they are not getting paid. This morning the WSJ reports that the FED will not expand its bond buying no wonder. It did not drive rates down and there is more bond supply, two trillion this nest year than there is money on the FED balance sheet.
Credit card debt is not expanding.
We suspect the worry for Bernake is deflation still, not inflation.
Now only $99*
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