Hask

Money manager Barry James says the worst is yet to come: "Corporate insiders, often the smartest money on Wall Street, have been voting with their pocketbook and selling. Further, Washington's growing interference in the marketplace is simply prolonging the problems the economy faces. We expect the market has not yet found its ultimate bottom."

Key comment from this interview:

"Washington's growing interference in the marketplace is simply prolonging the problems the economy faces." Unless the worst of the Obama proposals are extinguished we can't have significant economic growth. Nearly everything they're doing in our federal government will hinder our economy for many years.

Economists Brian Wesbur and Robert Stein think we'll see 4% GDP growth in H2. Contributing factors: a slow in inventory reduction; declines in the trade deficit; a homebuilding bottom; massive gov't spending; and a modest rise in consumer spending. "For the consensus forecast to remain at 2% real GDP growth, there must be some very, very pessimistic assumptions out there. We wonder what they are."

I want some of what they are smoking.

Banks led stocks to close right at session highs, as buyers poured on volume into the close and put the S&P back over 900. The Dow +2.3% (+185.16) to 8331.68; S&P +2.5% (+21.92) to 901.05; Nasdaq +2.1% (+37.18) to 1793.21. Crude -0.1% to $59.84. Gold +0.8% to $919.70.

Today looks like a lot of short covering.

U.S. Budget Deficit for June: $94.3B. The deficit stands at $1.086T so far this fiscal year. (.pdf)

Be patient. The Great One will save us from national bankruptcy.(Sarcasm off)

Will the Democrats' Massive Borrowing and Spending Binge Kill the U.S. Economy?

The answer to your question - Democrats are already is killing the U.S. economy and they're just getting started. Wait until increased minimum wage kicks in, or how about Cap & Trade. Throw in a little universal health coverage and trillions more in spending and this goose will be cooked.

Three lunchtime reads: 1) Roubini: Brown manure, not green shoots 2) Seven companies that upped 2Q views 3) Yen: Safe haven, but for how much longer?

It is a depressing forecast, but reality can be ugly sometimes. I appreciate his honest assessment.

Of the $53.6B in aid being distributed to states, $8.8B comes with relatively few strings attached. States plan to use around half of that to bridge budget deficits, showing just how serious states' financial troubles have become.

Bailing out more irresponsible legislatures so corrupt politicians can continue to fleece taxpayers. Keep feeding the drug to the addict and he'll never reverse course.

Weekly Unemployment: Lying with Numbers

Good perspective analysis. How can anyone place faith in these government statistics. There are so many seasonably-adjusted variables that real numbers are elusive. Making investment decisions based on these numbers seems foolish.

Economist Robert Frank discovers a Ph.D-powered economic perpetual motion machine. Mark Steyn explains: "The stimulus will work because enough economists are saying it will work that their prestigious postnominal credentials will impress enough of the masses into thinking it will work, which in turn will make it work." (via)

It's not called the dismal science for nothing.

Latest Food Stamp Data a Sobering Read

Sobering statistics. Nearly 10% of Americans are receiving food stamps. Wow!

Why the Recession Is Over

Not a good day for this prediction.

Employment Problems? Who Needs a Job Anymore

I'm sure this was partially tongue-in-cheek, but your analysis isn't so farfetched any longer. The socialists are in charge and the debt levels are going through the roof.

House passes climate bill 219-212. Crossing party lines: 44 Democrats, 8 Republicans. The CBO puts the average monthly cost per household just under $15 in 2020 (at full phase-in); Nate Silver finds the average American is willing to pay $19/month. AP's Q&A about the bill. (Previously: I, II)

What a disaster. Let's hope the "thoughtful" Senate kills this dragon.

Some tense debate in the U.S. House as a final vote on cap-and-trade nears. Rep. Devin Nunes of Calif.: The bill is designed to "satisfy the twisted desires of radical environmentalists." Texas' Joe Barton: "An economic disaster bill." President Obama stated the charge to consumers would be "a postage stamp per day" over 10 years. (previously)

Shoot it down! What a colossal boondoggle.With tens of millions of Americans unemployed and skyrocketing deficits, our ignorant legislators, at the behest of a socialist president, are going to saddle the American economy with extremely burdensome and costly legislation. And for what? Computer-model predictions that have never been accurate in forecasting climate change. China must be laughing all the way to the bank.

Among the many reasons for the rush to move a cap-and-trade system through Congress: a growing shift in the global warming tide of opinion.

Carbon-based, man-made global warming has been a fraud from the start and now the evidence is waking people up to this reality. Sun cycles are much more important in changing short-term temperatures and I don't think politicians have the ability to legislate away those. If the fools in Congress pass this Cap & Trade bill they will further devastate an already weak economy and have negligible effect on the climate. Spain has tried this path and it failed miserably. Emerging economies will not follow this hamstring their economies based on faulty "science" and America will suffer economically for generations. Let's hope this bill fails and reasonable efforts are made to get scientific facts on this issue out in the open.