Our government is achieving more success in re-inflating our bubble economy as they compel the consumer to spend more than they earn. Today's release of the Personal Income and Spending report along with the ISM Manufacturing report gives yet more evidence that we have learned nothing from the credit crisis which nearly brought down the entire global economy.
The majority of the financial ‘experts' in the world did not see the credit crisis coming, including the Federal Reserve, SEC, numerous Congressional committees with financial and regulatory oversight, and certainly not the heads of the financial institutions that failed or required a federal government orchestrated ‘bailout' to stay in business.
The number of exchange-traded products (ETPs) on ETF Deathwatch grew again this month. For April, the quantity is 108 (76 ETFs and 32 ETNs), up from 104 for March.
Thirteen new funds launched last September, and now that they are at least six months old they have lost their Deathwatch immunity...
Let's turn our attention to real estate for a minute. The thorn in the economic recovery's side, after all, has been the mortgage market. Investors are worried that with so many mortgage holders under water, the hoped for economic reversal has no chance to stick. Debt relief has been a paramount concern since the credit crisis began, and rightfully so. Yet it has been elusive.
The S&P last night made a new high and for the first time in months, made it on normal range and volume based on this run up. But that is not to say all is perfect with the move up.
1. My sentiment services (Sentiment Trader and Whisper Numbers) have the S&P overbought.