So trivia question: Which of the following three news stories correlates to why the market has dropped? Hint: There is no 'all of the above' choice-- Investors are selfish beings and only able to care about one specific thing besides themselves at a time..
Is it?:
A) US households on food stamps have now hit a record high with 23,087,886 who received in January according to the USDA. Remember this is households, not individuals, so this could represent one person, or two or four or even eight people of all ages living under one roof....
The average monthly benefit to each household dropped to a record low of $274.04
B) For the fourth month in a row, NAHB's (National Assoc. of Homebuilders) sentiment index missed expectations. With 'real' data on the housing recovery beginning to fade, confidence in the sustainability of the 'recovery'(which never should have been there in the first place) starting to fade.
Today's NAHB print is the lowest in six months and is the fastest 3-month drop since June 2011.
OR..
C) China's GDP came out less than what was predicted for the first quarter of 2013.
Well.. its certainly Not 'A'..
No one in Government or Wall Street gives two-shits about the suffering of everyday people. In fact the more they suffer the better i.e. more debt load on the micro or individual level means a national economy that doesn't collapse upon itself...
For four plus years, all involved have collectively shrugged as the middle and working classes become more financially decimated, so the fact that more households are on food stamps now than Ever before sure isn't going to elicit more than a yawn.
And its not 'B' either..
The only people who genuinely care about the real estate malaise, are home sellers, Realtors and local politicians in those areas most affected who are seeing property tax revenue streams dry up due to abandoned homes, foreclosures and the like..
Now if you're an Investor who has money tied to stocks that are directly involved in the process of home building/construction, then OK, you care.. but generally speaking.. another 'yawn'...
So the answer is 'C'
"China’s GDP grew at a 7.7% annual rate in the first quarter--less than the 8% economists had forecast--and the news sent gold and global markets tumbling. China's Q1 GDP is below the 7.9% growth rate recorded in the fourth quarter of last year.
The disappointing Chinese GDP report, viewed in the context of slow growth in the U.S., recession in Europe and near zero growth in Japan, is fueling fears that the global recovery is in danger"
We don't know which is funnier-- the fact that the US reported GDP in the 1Q of 2013 as -0.1% and every piece of garbage know-it-all was touting it as 'the Best negative growth you'll ever see' yet treats +7.7% growth in China as doom... Or..
The fact we trust the figures that come out of China at all. They cook their books.. Pretty obvious-- its a closed society. They could report any economic figures they want and who outside of China can go in and double-check. So 7.7% growth could mean 2.7%... who knows?
Pathetically funny..
Isn't this the same Wall St that salivated like hungry wolves staring at mutton at all the profit to be made off Japan's tsunami in 2011?
The only lives Wall St cares about is their own..
The institution we as a nation take such pride in and want to grow, genuinely looks down with a collective nose snub upon the masses. It profits off our misery and for every $1 an everyday investor may make from risky trading, it makes sure its made $3-5
The wealthy who sit around the house all day twiddling their tallywackers and glancing at their portfolios-- we reward them with low tax rates off their profits...
Because if we didn't have a stock market at 14,700 or whatever inflated number it is today, how else would the commoners living in muck and mire, believe we were actually in a glowing 'recovery'?
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