Data on manufacturing shows that sector to be shrinking. It is now thought that another recession could be in the wing for 2012. On the other hand some believe its the summer doldrums and that eventually the Fed will get tapped for a QE3.
Either way, the economy blows.
CS Monitor: Why debt-ceiling deal didn't give stock markets a bigger boost
“The financial markets always knew there would be no default on the debt...If they had been worried, interest rates would be north of 4 percent, probably closer to 5 percent, and the market would have been down 15 percent.”
...the ISM manufacturing index declined from 55.3 to 50.9. Anything above 50 indicates the economy is growing. However, some aspects of the report, including new orders, inventories and backlog of orders all contracted and in some cases shrank at a faster rate.
“This means another market volatility-inducing budget battle is on tap for early this fall..."
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