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Wednesday, September 9, 2009

Market Rallies into horrible news

The US market is 70% "consumer" driven. And as well publicized the US consumer is powered by Credit. Today we find out consumer credit shrunk by over 21 billion, more than 5 times estimates. This puts consumer credit at an annual 10% rate.

Keep in mind in July/August we had cash for clunkers, and even the buying of cars with "free government money" couldn't keep consumer credit afloat. This coupled with jobless rate the highest in 26 years, and what does the market do? Rally.

There is no news short of US currency implosion that seems to be able to stop the market from advancing.

Lets see what next month brings without free money to give people incentive to buy a car.

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