Jun 10 2011
How Screwed Up Is This?
My ‘How Screwed Up Is This? note for today has to do with the pronouncements yesterday by equity market commentators that the Dow and S&P indexes went up yesterday because of the good news that that the U.S. Net Trade Deficit for April was U.S.$43.7 billion, smaller than the U.S.$48.8 billion that was forecast.
I consider it truly nonsensical that this could result in the U.S. equity markets gaining ground. Continued monthly U.S. Net Trade deficits signal continued erosion in the U.S.’s world economic status. In my view the U.S. equity markets are truly ‘grasping at straws’ if they think an April Net Trade Deficit of U.S.$43.7 billion is ‘good news’.
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