Global Market Commentary, Analysis and Investments
We have deficits and debts on the brain today. The federal deficit for the first four months of fiscal 2010 just clocked in at $430.7 billion. That’s 8.8% higher than the year-ago figure.
We remember that when the annual deficit hit a record high $430 billion under the second Bush administration, we thought the world was going to end and we’d have to “buy guns, ammo, dry goods, go into hiding, cling to God and wait for the country and the rest of world to collapse.”
[Read more...]The dollar bulls were celebrating again on Friday, as the dollar rally continued. The recent strength in the US dollar will probably continue this week, as it looks like it will be fairly uneventful as far as data releases. We won’t have any reports out in the US today, and tomorrow will only bring the wholesale inventory number. Wednesday we will see December’s trade balance along with the monthly budget statement for January. Both of these numbers will likely reflect an ever-growing deficit here in the US, with a $50 billion monthly budget deficit, and a trade deficit just below $35 billion.
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US Credit Rating: Who Will be the First to Downgrade?
During World War II, there was a saying, that, “loose lips, sink ships”… I think Greek Prime Minister, George Papandreou, should have taken those words to heart yesterday… You see, the currencies, led by the beleaguered euro (EUR), were rallying, and the single unit was nearing 1.37, when Papandreou made a statement that sunk the rally’s ship… He said, “Greece’s debt problems could soon spread to the rest of Europe and mean a weaker euro”
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