I'm telling it like it is!

Here I was thinking that this week I get to write about something other than the stock market...then Thursday came. Monday - Wednesday the markets were stable and fairly quiet. All of a sudden on Thursday, once again people started talking about the global economic slowdown and reduced expectations for future growth. Once that started we all know what happened... the stock market tanked 420 points.

Someone please, please, please (I'm begging) tell me how the economic picture can change from day to day. I am desperate for someone to explain this to me. I look at the economic numbers and reports just like everyone else and I cannot for the life of me see how the expectations for economic growth change day to day.

Here is the deal, the economy is struggling, the European debt crisis is not going away anytime soon, and housing remains in the toilet. (Sorry I am just telling it like it is) Oh yeah, I almost forgot about unemployment...that stinks as well.

Just as I predicted last week, the prior report on first time jobless claims was increased from 395,000 to 399,000.(Do you remember I wrote last week about how the market celebrated 395,000 people losing their jobs?) Bloomberg.com even went as far last week to state that the employment picture was improving. Well this week claims are back up to 408,000. I guess things are getting worse again huh? When are these prognosticators going to stop making judgment on the direction of the economy or employment based on a single report? (Hey Mom, I used a big word "prognosticator"...you see all of your money you spent on my college education did not go to waste)

Housing reports this week were worse than expected. Well...actually the reports would have been dead on accurate if the people making market predictions had bothered to ask mortgage and real estate professionals what is happening in the real estate market versus asking the bean counters at the National Association of Realtors who sit behind a computer all day and are completely out of touch with what goes on day to day.

Housing Starts declined by 1.5% in July after an unexpected jump in June. Existing Home Sales dropped 3.5% in July and the supply of housing has increased up to 9.4 months. Median home prices continue to decline and are down 4.4% from the same time a year ago.

Open Message to the President: "Hey Mr. President, It's housing that drives everything else. I know you don't understand that because you are clueless on general business practices, however as President you have the power to surround yourself with people that actually DO understand business.

Anyway, I digressed (Look Mom, I used another big word) Inflation remains in check. Despite a larger than expected increase in wholesale prices, retail prices remain stable outside of the volatile fuel and energy costs that change radically month to month.

Lastly, I hope you are as excited as I am about the President announcing that he is going to announce a new job and economic stimulus plan in September. Why would he make an announcement about an announcement?