Chris Puplava's picture

Despite all of the negative fundamentals facing the U.S. economy, the unthinkable has happened: the dollar has staged a significant rally. Since bottoming in July the USD has risen 9.6% to over 78 after grinding out a bottom since May.

Frank Barbera CMT's picture

Since mid-July, stocks have experienced a lot of short term volatility with the DJIA posting 13 sessions of the last 30 days with daily closes in excess of 150 points up or down. Today, was more evidence of this wild volatility with the market soaring higher at the opening and then giving back all of the gains.

Chris Puplava's picture

Last week I took a look at why consumers were so depressed. In short, my conclusion was that consumers were finally coming to terms with their balance sheets and this wakeup call: that you can’t borrow your way indefinitely to maintain ones standard of living.

Frank Barbera CMT's picture

Unfortunately, we live in turbulent times. ‘Clarity’ can sometimes be a difficult commodity to come by and real confidence, even more rare. At this juncture, it seems clear that the US Government has set itself upon a course of unlimited damage control.

Rob Kirby's picture

My concern is that on our current path, we will reach a point where confidence is shattered, resulting in a geometric advance in the nominal prices of all things real. Are you protected?

Chris Puplava's picture

Phil Gramm, economic advisor to Presidential candidate John McCain, said last month that the U.S. consumer was in a mental recession and that the economy’s fundamentals didn’t warrant the low consumer confidence numbers.

Frank Barbera CMT's picture

It is hard to comprehend how far off the mark the official GDP numbers are at the present time. So far, with virtually all “non major” headline numbers moving into recession, we have seen the government statisticians skillfully manipulating the GDP figures higher...

Frank Barbera CMT's picture

For the last 4 weeks, commodity markets have been shredded with prices moving steadily lower across the board. From the July highs, spot Copper is down 17.72%, nearby Gold down 17.03%, Spot Silver down 24.62% and spot Platinum down 26.54%.

Chris Puplava's picture

It has been one year after the credit crisis took center stage last summer and heralded the market top that took place months later in October. Since that time the markets have begun to do something they neglected to do; begin to price risk into investments.

Chris Puplava's picture

The credit crisis and stock market roller coaster ride over the last year and a half have introduced many new acronyms many have never heard of before (CDOs, CDS, CLOs, etc.) and brought out the wit of the financial industry.

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