March 12, 2009

The problem with todays reality

What this tells me is that Americans are having a tough time coming to terms with reality and their is still a lot of downside risk. How is this blurb out of the Wall Street Journal positive. It literally says that people are spending money while job loss is increasing. Last I checked that was a very quick way to end up bankrupt.

Until we see data that matches (sales are declining and job loss is occuring, or sales are increasing and job loss is slowing) we haven't seen a bottom, in the market and a rebounding to the economy. Buckle up and hold on.

WSJ NEWS ALERT: Retail Sales Slip in February, but Beat Economists' Expectations
News Alert
from The Wall Street Journal

U.S. retail sales edged down in February for the seventh time in past eight months, but the decline was less than economists expected. Retail sales fell 0.1% in February but climbed 0.7% excluding autos, the Commerce Department said. Increases in an array of businesses from furniture to clothing and electronics suggest consumer resilience to a recession throwing droves of people out of work.

Sales in January were revised up sharply, surging 1.8% instead of rising by 1.0% as originally reported.

Separately, the Labor Department said first-time unemployment claims increased to 654,000 from the previous week's figure of 639,000, above analysts' expectations. The number of people receiving benefits for more than a week increased by 193,000 to 5.3 million, the most on records dating back to 1967.

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