Here we go again!
I could just reprint Tuesday's morning post because we're right back at Tuesday's levels but today is GDP Day so nothing matters until those numbers are released.
Tuesday's post was about denial but it was easy to call a drop that morning because there was no data and no market moving news that I thought would save us that morning. Today we have The GDP and the deflator but tomorrow we hear from the big Kahuna - Uncle Ben addresses the nation to wrap up a week of sun and fun and economic chit chat over in Jackson Hole.
Ben had better mind his Ps and Qs when he speaks because we've already gotten the warning I mentioned
from the German Economic Advisory Board and today the language was taken up a notch by OECD deputy director, Adrian Blundell-Wignall, who said
: "The US Federal Reserve should not cut interest rates in response to the recent turmoil in financial markets. The Fed should only cut rates to meet its fundamental objectives of controlling inflation and maintaining the health of the US economy
. If the US economy is threatened by a slowdown in activity, then a rate cut would be justified. But if this is not the case, then a rate cut would merely help to bail out investors who have taken ill-considered risks.
We are not the world's #1 economy anymore, we need to get used to being treated like this!
It's just 5 minutes until the GDP as I write this so I'll get the fact that Asia rallied back (woo-hoo!) and Europe had a weak finish, making it all the more baffling how the big boys on Wall Street knew to start rallying almost an hour before the Senator from New York announced he had a letter from the Chairman of the Federal Reserve (what time does mail get delivered?) that said (but not really) they will come to the rescue. Just remember boys, when the SEC asks what prompted your buying remember to DENY, DENY, DENY!
GDP is up 4% vs. 4.1% expected vs.