Spring Has Sprung, But U.S. Economy Still Snowed In – Ep 79

* Markets on roller coaster ride final two trading days of this week

* Bad news parade marches on in April

* The players are still clinging to fantasy of U.S. economic recovery

* Dollar finished down substantially on the week - April was the first down month in 10 months

* Dollar has seen its highs and is heading lower

* Gold back below 1200

* Oil prices added to gains closed above $59 - moving opposite to the dollar

* Friday - March Personal Income & Spending flat below expectations

* Personal Spending also lower than expected; .4% gain

* Savings dropped from 5.7 to 5.3 - the lowest savings rate of the year

* April PMI Manufacturing Index - dropped more than expected to 54.1 even as weather warms

* ISM Manufacturing expected to rise to 52 - remained flat

* Employment Index dropped two points - the first drop in 2 years

* March Construction Spending fell by .6 missing expectations

* Atlanta Fed correctly forecasted Q1 GDP at .2, forecasting Q2 at .8

* Article on Zero Hedge: Goldman Sachs warning Europe about severe "Lowflation"

* Article in Bloomberg: Chinese can't "kick" savings habit

* Blames problem on "not enough government"

* The reason America is in so much trouble is that we don't save

* Once the Chinese have built up a cushion, then they will spend

* When our phony economy bursts, it will be apparent that we did not save enough and had too much debt

* America gives capitalism a bad name - we preach it but do not practice it

* We rely on a giant government-run ponzi scheme of socialized savings

* We are telling the Chinese they have too much free market capitalism

* We have been indulging our present and sacrificing our future

* The Chinese will be rewarded for their prudence

* The most ironic thing about the Bloomberg article is that they suggest Chinese would be better off under Communism


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