Friday, May 6, 2011

Where Are We Now?

In our Briefing of May/4 we stated that the less interference from the Fed and Congress, the more constructive we can become. We have demonstrated that 1) the Bernanke’s policy of generosity has only hurt the average consumer and 2) that government spending is at best a wash, sucking energy from the private sector.

As we predicted mid Q1, gasoline prices provided a big hit to consumer activity. That impact will linger through Q2. We don’t know the direction of crude over the near term so cannot judge what extend this will provide a retardant, H2.
 
The US economic engine wants very badly to burn on 7 of 8. It can do so if left alone by those who simply cannot sit still, cannot refrain from interference, jabbering yet providing nothing of substance. We all know this kind from our daily lives. It’s that simple.


Robert Craven

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