We are only back to 2007 GDP run rate. After all of the stimulus. After all of the bailouts. After all of the government programs. Back to where in 2007.
Oh, did I mention that inventory build added 3.4% to the figure?
So if we are going to rely on inventory pickup the rest of our lives to have upward revision to GDP. We are all in serious trouble.
But 5.7% is still good for the bulls. Stock index futures are getting a decent bid at the moment. The markets will get a respite today. Microsoft and Amazon will also help the NASDAQ, which actually broke technically yesterday.
How did we do it?
-Roughly adding $2 Trillion in additional government debt.
-Total and complete control of 2/3rds of the Auto Sector.
-$23 Trillion in stabilizing the Banking/Housing Sectors.
-Most importantly trillions in future deficits as far as the eye can see.
Nice Job Guys!
We wont see a print like this for a while. So enjoy it while it lasts.
Stock Index Futures are higher at the moment. I just don't think it will hold up. From my perspective the market is firmly entrenched to the sell side. All attempted rallies are being sold. Microsoft and Amazon will help the NASDAQ, although the MSFT number was just OK. We are back at the point where the risks to owning equities and risk assets are worse then not owning them. The big wild card here is will bonds/Treasuries rally? If what I had predicted earlier comes true, the sell off in equities will have money moving to treasuries. The ongoing correction in global equities can easily spiral out of control if US Treasury yields also rise in tandem.
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