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Wall Street Breakfast: Must-Know News

And to make everybody feel better about the future and the benefits of the 787 billion stimulus bill the AP reports this bit of news


WASHINGTON — A top White House economist says spending from the $787 billion economic stimulus has already had its biggest impact on economic growth and will likely not contribute to significant expansion next year.

Christina Romer, the chair of President Barack Obama's Council of Economic Advisers, said Thursday that the $194 billion already spent gave a jolt to the economy that contributed to growth in the second and third quarters of the year. She told a congressional panel that by the middle of next year, the impact of the stimulus will level off. Romer said spending so far has saved or created 600,000 to 1.5 million jobs but warned that unemployment will remain high, above 9.5 percent, through the end of 2010.

Closing Update for Friday, July 24: Salvaging a Gain

The recent stock market rally started when investors realized " We would not fall into the abyss", then the market started to run up based on very bad financial reports that could have been worse, it continued its run based on companies ability to post profits and survive through drastic cost cutting measures, and now they may have run into a wall, we could be at the markets tipping point, with the market considered fully valued, the market mayl retest recent lows if investors continue to believe this will be a jobless recovery, which means companies will only be profitable if they continue to rob Peter to pay Paul, that being the case investors will want to lock in recent ousttanding gains and stampede for the exit door.

Earnings Preview, Week of July 20-24, 2009

Seems to me that GS and JP Morgan reported great numbers as a result of Fed intervention and their great FED borrow and lending terms, otherwise they would have been DOA, IBM, Intel did well but does this represent the American consumer health or just a narrower market segment, what about GE horrendous report wouldn't that be more representative of sentiment of the broader consumer market. While the Feds preferred lenders are doing well what is happening to those who have to fend for themselves like CIT, not good. Tech seems to be doing OK but based on what, are consumers upgrading their computers, business upgrading, governments upgrading? New build Housing numbers improved, is it because demand is rebuilding or its that just that time of year where builders start homes or the first time buyer tax credit will expire soon, car sales are up slightly, why, is it clunkers for cash ? Whats is the read between the lines truth, I want to believe things are really getting better but something just isn't adding up and Im looking for reasons to believe otherwise. And don't get me started about all the spending the Gov has and will do, the new programs and higher taxes coming. Like they say " Dont piss on me and tell me its raining" I want to believe its rain but something is telling me its not