Flat as a Pancake

Lonely, low volume and flat as a pancake....that's how we started the week. The August 500 Call was available.

This is a very big earnings week, with everyone from Google to Campbell Soup reporting, and a big bank, JP Morgan Chase.

Fed minutes are released on Wednesday. Study the economic calendar you got on Monday to know what indicators will "trigger the market" in addition to the strength of movement.

There has been a 9.1 billion decline in consumer credit for May. This is good, but bad, as people can only spend on credit. Many are living paycheck to paycheck.

Home prices in 20 large American cities rose by 3.8% in the year to the end of April. Some housing markets have begun recovering from their lows. In San Francisco prices actually increased 18% from April a year ago. And as I travel some areas of the U.S, have not lost the value of their homes like those in Florida, California and other true boom markets....Miami to Wyoming

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The most important piece of the jigsaw of a rising economy is not bullshit like "buy less from China," or "the government caused this and now we're becoming socialists."
Idiots think this. (Sorry if you are one)

A large part of the jigsaw is that consumers owe $14 trillion. This is all Obama's fault, like everything else. He and those Democrats (not a single Republican) are not focusing on JOBS that will allow people to spend.

Here's the facts:

1. There is $14 TRILLION in household debt, and $10.5 TRILLION of that mortgage related, thanks to Bubbles Greenspan.

2. Americans have now decided being upside down that is okay to PHUCK your bank. We predict more and more will just walk away from their mortgages as their homes lose more value.

Reduced spending may occur with this, as will rising delinquencies on credit cards and mortgage accounts.

3. A Floydian Fact of real merit: There is an astonishing decline in bank deposits, clear evidence we as a public are starting to burn through the cash.

4. Stephanie Pomboy, Market Maven, says there is almost a zero chance of our ratio of debt returning to 65%, what it was before Bubbles Greenspan came to head the FEDS, and we all believed him GOD, because the money was free. She analyzes that to decline our debt by 6.3 trillion, or increase income by 9 trillion would bring us to this 65% reasonable and healthy rate, would take up to 10 years to occur, and has a ZERO chance of occurring because 40% of our households now spend every dollar they make just to keep their heads above water.
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And here's some babbly from the Bubbler, the guy that started it out, Mr. Bubbles Greenspan:

Former Federal Reserve Chairman Alan Greenspan said the U.S. economy may be undergoing what he called a “pause,” and that he can’t rule out the possibility of a so- called double-dip recession.

“Of course, there’s a possibility,” Greenspan said in an interview on CNBC today. “The trouble is there’s always a possibility in both directions.”

Greenspan, who ran the central bank from 1987 to 2006, said “it’s more than likely” that a “pause” is occurring in the world’s largest economy. Inventory accumulation “has stopped” and production “has flattened out,” the 84-year-old former central banker said.

Companies added 83,000 workers to their payrolls in June, less than forecast by economists, the Labor Department report said last week. The report capped a month of data on housing and manufacturing that point to a slowdown in the economy.

Stocks rose today, giving the Standard & Poor’s 500 Index its first-three day rally since April, after the Labor Department reported that claims for unemployment benefits fell last week more than forecast and the International Monetary Fund raised its estimate for global growth in 2010.

“Stock market behavior over the last several days” has been “encouraging,” Greenspan said after S&P 500 index rose 0.9 percent to 1,070.25 at 4 p.m. in New York, its highest close since June 28. “Banks are scared, but, then again, so are businesses."

He added that there are “still huge imbalances in the flow of funds,” and that China’s currency remains “undervalued.” After he spoke, the U.S. Treasury Department released a report to Congress saying the yuan “remains undervalued,” while stopping short of branding the country a currency manipulation.