Trading Radar: Dubai Default Fallout
Other market moving news next week will be Friday’s nonfarm payrolls number, the ISM Services Index released Thursday and Pending Homes Sales on Tuesday.
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Monday, November 30
Economics
09:45 Chicago PMI 53.0 cons.
Earnings Before: NRGY
After: GES, OVTI
Auctions
11:30 3-Month Bill Auction
11:30 6-Month Bill Auction
Events
ANR at Macquarie Global Metals & Mining Conference
APD, MOS at Citi Global Chemical Conference
Tuesday, December 1Economics
10:00 Construction Spending -0.4 cons.
10:00 ISM Index 54.8 cons.
10:00 Pending Home Sales -0.3 cons.
Earnings
Before: BECN, LDR, SPLS, UTI
After: GAME, SNDA
Auctions
11:30 4-Week Bill Auction
Speeches12:20 Charles Plosser
Events
AGO Analyst Meeting
BMO Capital Markets 2009 Utility Day
Wednesday, December 2
Economics
07:30 Challenger Job Cuts
08:15 ADP Employment Report -155k cons.
10:30 Crude Inventories
02:00 Fed Beige Book
Earnings Before: CHRS, PTRY, SYNO
After: ARO, PSS, JAS, SEAC, SNPS
Thursday, December 3
Economics
08:30 Initial Claims 483k. cons.
08:30 Continuing Claims
08:30 Productivity 8.5% cons.
08:30 Employment Cost Index
10:00 ISM Services 51.4 cons.
EarningsBefore: APWR, STS, DLM, MOV, TOL
After: ARST, AVGO, DMND, LQDT, MRVL, MENT, NOVL
Friday, December 4
Economics
08:30 Nonfarm Payrolls -120k cons.
08:30 Unemployment Rate 10.2% cons.
08:30 Average Workweek 33.1 cons.
08:30 Hourly Earnings 0.2% cons.
10:00 Factory Orders 0.2% cons.
Earnings Before : BIG, SIRO
After:
Speeches
10:00 Charles Plosser
01:15 James Bullard
Events
Minyanville’s Annual Holiday Festivus
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The US has a strong dollar well contained policy that is contained to the US and as long at the banksters are okay and well funded with free money there are no cares in the world (as applies to the US as that is the centre of the universe and nothing else exists outside this area)
In the past economy seemed to be doing OK solely due to credit inflation that FED has fostered. FED made it easy to borrow. America borrowed and spent. When we borrow money, banks create new money and give it to us. They do not lend existing money. Here is how banks create money.
http://www.tradingstocks.net/ html/banks_create_money.html
Why does it matter? Well, all of our money supply is bank credit. It is borrowed money. It needs to be paid back as principal + interest. The interest portion is not even created yet. Borrowing MUST increase exponentially so that principal+interest amount exists in the economy so that people can earn it and pay back what they owe. What happens when borrowing stops? Deflationary crash occurs. Debt problem:
http://www.tradingstocks.net/ html/inflation_deflation_credit_bub.html
FED and the US government are running a ponzi scheme that is about to stop now. There is a limit to how much people can borrow. To make it last what did they do? They allowed people to deduct mortgage interest from income tax. That made mortgage more attractive. So people borrowed more and injected new money into the economy. This new money makes the current administration look good. After prime borrowers were exhausted, they changed the rules to allow sub-prime borrowers get big mortgages. Now sub-prime is exhausted and the crash has started.
http://www.tradingstocks.net/ html/jaguar_inflation.html
