Wall Street Today:
-Dow Jones Industrial up 6.4% YTD
-Nasdaq Composite up 26.3% YTD
-S&P 500 up 11.5%
-American Bankruptcy Institute: consumer bankruptcy filings reached 126,434 in July, a 34.3% increase year over year, and an 8.7% increase sequentially (116,365 in June). July’s number is the highest monthly bankruptcy total since October 2005.
-The Congressional Oversight Panel warns that banks may still hold many risky loans, U.S. banks may still need new capital, possibly as much as $12-14B, to cover troubled loans.
-Chinas $1.1 trillion of lending in the first half helped drive a 7.9 percent economic expansion in the second quarter. The economy will grow 9.4 percent this year, topping the government’s 8 percent target but this is not real growth. ChinaConstructionBankCorp the nation’s second largest bank, will cut new lending by about 70% in the second half to avert a surge in bad debt, seems like someone over there is realizing the possible consequences.
-BOJ keeps the call rate at .1 pct, stating that the pick up in demand might be unsustainable. Good call but then again hasn’t Japan been in a recession since the early 90’s?
-Q2 productivity rose more than expected, 6.4% after only a slight rise of 1.8% in Q1. This should not be a surprise, those that still have a job are trying to keep it.