Thursday, August 4, 2011

Economy Report: August 4, 2011 - Paul Buzby

ECB leaves key rate at 1.5 pct amid market turmoil
Europe’s banking interest rate is higher than the Federal Reserve interest rate. This is to try and keep Europe inflation in check and give a slight edge in exchanges with the U.S.

Stocks slump as economic, Europe worries continue
Europe is in serious trouble. U.S. numbers were terrible during June because of the artificial fear generated over the debt ceiling limit.

Retailers report solid sales gains for July
Numbers starting to recover after passing arbitrary debt ceiling limit date.

Unemployment aid applications tick down to 400K
Numbers starting to recover after passing arbitrary debt ceiling limit date.

Rate on 15-year mortgage falls to decades low
One more round of foreclosures do to federal, state, country and city layoffs. Slump should continue in the residential area for the next 6 months.

Comex Gold Notches Another New High on More Safe-Haven Buying
Fear only. The rest of the commodities market is flat. Possible bubble.

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