Thursday, August 13, 2009
Retail Sales "Unexpectedly" Decline
"Retail Sales in U.S. unexpectedly fell as job losses Mounted"
Unexpected? By WHO(M)?
Look, I will grant you that a powerful rally has taken place since March.
I am willing to bet C notes to donuts that when the smoke clears, history will show that the Federal Reserve - in addition to supporting the bond market, the auto market, the banking system, and the mortgage market - bought S & P futures to support the U.S.l equity market, in an "extra" legal (illegal) effort and in direct contravention of their Charter. No wonder we had a rally with that kind of power behind the short squeeze (this is why you can't stand on ceremony. If you are wrong, you gotta be gone. It is insisting that you are right and the market is wrong that brings the BIG loss). No wonder the Fed has refused, so far, all efforts to audit their balance sheet.
(Not that I would not have done the EXACT same thing if I were in their shoes...)
This report is enormously supportive of the U.S. Treasury market and the US$. The U.S. equity market? Not so much.
Libertariananimal (at) gmail (d0t) com
Posted by The Short Story Man at 5:51 AM