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Saturday, September 17, 2011

McAlvany Wealth Management |  McAlvany Weekly Recap

McAlvany Wealth Management | McAlvany Weekly Recap: Suffice it to say, the party in the market completely ignored a host of bad economic news released during the week. Retail sales figures for August rose an underwhelming 0.1%. If expressed in real terms, this figure would have been much worse as gas station sales were up 20.8%. In addition, the CPI for August rose 0.4% (MoM) vs. expectations of 0.2%. Obama’s job plan, in which he plans to spend $477B to be financed by tax hikes of $421B (in part by taxing income on municipal bonds), is economically flawed and yet continues to go unrecognized by the market. Further beyond the public eye was an approved debt deal in Jefferson County Alabama that apparently avoided the largest municipal bankruptcy in U.S. history; the Jefferson County Commission voted 4-1 Friday to accept terms which included a $1.1 billion concession from creditors. JPMorgan Chase & Co., who arranged most of the debt, will take the biggest loss. Taxpayers will also bear the burden of rate increases of as much as 8.2 percent for sewer services – more debt deals to come in other states we think…

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