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  • MINDS IN THE DUMPS - By Charles Payne 1 comment
    Aug 29, 2014 1:53 PM

    "We don't want to put the cart before the horse."

    President Obama

    Our Commander-in-Chief explaining that there is no current plan for dealing with the terror group, ISIS, beyond our containment efforts is the kind of thing that hurts the overall mood of the nation. But is disappointment with our elected leaders and slow recovery enough to explain why Americans are so glum? We are really down in the dumps, and it's not just the fact summer is almost over.

    The market is rocking, housing is coming back, and unemployment is plunging… those are common headlines from the New York Times and political operatives, but each day, we sink deeper into the abyss. I get that the NY Times and most political operatives are detached from the hearts and minds of the average American, yet this is a phenomenon.

    We're actually less confident about the future now than in the more immediate aftermath of the recession. Now, 71% of Americans think permanent damage has been done to the economy; back in November 2009, it was only 49%.

    Fading Hopes? November 2009 August 2014
    Permanently Damaged 49% 71%
    Unemployment Rate 9.9% 6.2%

    This same kind of bifurcation between assets and emotions is reflected in consumer confidence compared to the stock market. The market is at all-time highs, and confidence, as of late, has been plunging and unable to near its highest level achieved in the year 2000.

    Of course, it's hard to feel like things are getting better if you look in the mirror and see yourself in a lower economic condition. Only 57% of Americans now see themselves as middle class, down from 72% in 2008.

    I understand the frustration and disappointment, but worry about this 'woe-is-me' crisis materializing into a real economic crisis. I think we need to be reminded, as the world becomes shakier, that people still equate safety with America and money flows here. Watching the foundations crumble from the inside obscures the greatness still seen from the outside. In July, the US dollar rallied ahead of all other major currencies. Yes, we have work to do in untangling this deadly web, restoring the pride in being great, and restoring the dignity in wanting to overachieve. To get there, morale has to be a lot better than it currently is… get out of the mental abyss.

    Today's Session

    After closing in the red yesterday, the major indices are up and kicking, preparing to close the month of August in the green, making this the fourth straight week of gains. It appears observers are finally acknowledging the mounds of positive US economic data that was released yesterday. During today's session, we will get a look at personal income and outlays, the Chicago PMI, and the consumer sentiment. Below are a few of the companies that reported yesterday after the close and this morning.

    Ticker EPS (Actual) EPS (EST) EPS 1-YearAgo Rev (Actual$M) Rev (Est$M) Rev Y/Y %
    AVGO 1.26 1.05 0.74 $ 1,287.00 $ 1,335.32 99.8%
    FRED -0.19 -0.17 0.09 $ 491.20 $ 487.39 1.9%
    SPLK 0.01 -0.02 -0.01 $ 101.50 $ 93.82 51.7%
    BIG 0.31 0.30 0.31 $ 1,195.00 $ 1,201.78 1.2%

    Personal Income Outlays

    During the month of July, income growth among consumers slowed. Personal income increased 0.2% to $28.6 billion in the US from June. The slight increased personal income resulted in disposable income rising only 0.1% to $17.7 billion from June. June saw both personal income and disposable income grow 0.5% from May. Despite the increases in income, that nation saw spending decrease by $13.6 billion, or 0.1%, which brings us back to March of this year when consumer confidence began to tumble. Our economy is expanding, employment is up, housing sales are up, yet many remain discouraged. Spending has become guarded and savings has increased. We need to break out of this funk and celebrate our accomplishments. I get that wages aren't climbing high enough to match inflation, but the divergence between spending and savings is shocking. We've come a far way since the recession hit.

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  • ellaruth
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    Comments (1094) | Send Message


    I have enjoyed you for years, thanks so much for this article.
    I do think that Obama has general strategy.


    1. Refuse to identify Isis as an Islamic Organization on humanitarian grounds.


    2. If you refuse to identify the primary aspects of your enemies identity, then you have a right to be inexact eclectic, indecisive and reactionary.


    3. Indeed if we have the opportunity to missile attach a hundred of them in an Islamic graveyard, it will probably be deliberated long enough for them to disperse.


    4. I am also sure that we won't use female soldiers to drop bacon greased bombs or pork coated bullets. If they are killed in this fashion Isis believe that they cannot go to heaven.


    This is all part of Louis Farrakhan's interrogatory to Obama,
    "Who in the Hell do you think you are?(See Utube) Which rattled BHO so much that Al Sharpton and perhaps others were dispatched to appease Farrakhan, by helping him obtain a Howard University visit to quest lecture the students, faculty and other there.


    "Who in the Hell does Obama think that he is", Louis Farrakhan, the master of coining the identity of Chicago area African Americans got it right " He is a Messiah" (On Utube) as he over and over proclaimed to his congregation leading up to the 2008 election. However, Min. Farrakhan lost that enchantment. I wager that Mr Obama yet believes that he is an authority within Islam, able to determine who is a Muslim, and who is not. He certainly acts like it. I happen to understand Isis as a devout practicing Islamic organization.


    Both of Obama's Muslim Fathers would be proud of him and Frank Marshall Davis would be appeased on other matters, so that it would not be an issue. Obama's bifurcated communist, Islamist soul is evident once again. I defy those including Fox News that strive to forbid me to recognize the obvious about Obama and label the president for exactly who and what he is.


    Ella Ruth.
    29 Aug 2014, 04:47 PM Reply Like
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