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Economics

   This Week’s Data

    The big news out of the box this morning is Obama re-appointment of Bernanke. 
    http://www.calculatedriskblog.com/2009/08/obama-to-reappoint-bernanke.html

   Other

    Unintended consequences (short):
    http://mjperry.blogspot.com/2009/08/cash-for-clunkers-is-bad-news-for.html

    More positive regional economic news (short):
    http://mjperry.blogspot.com/2009/08/chicago-fed-index-increases-for-6th.html

    Betting against the Fed (medium):
    http://www.cato.org/pub_display.php?pub_id=10475
   
    Along the same line as the above link, one of the issues I have been raising is how effective the Fed will be in withdrawing liquidity as the economy improves in order to rein in inflationary pressures.  We are starting to get some answers (medium):
    http://www.reuters.com/article/ousiv/idUSTRE57K5LL20090822

    The other issue in my economic forecast is how rapidly the economy can recover.  This article addresses that (long):
    http://www.ft.com/cms/s/0/6c77b400-90bf-11de-bc99-00144feabdc0.html

Politics

  Domestic

When it comes to the really tough criticism of Obamacare, I rely on my favor liberal blogger because I know that if he finds something objectionable, it probably is.  This piece is on health care for illegal immigrants (short):
http://slate.com/blogs/blogs/kausfiles/archive/2009/08/23/will-obama-let-health-care-for-illegals-kill-his-bill.aspx

    Another very good article on healthcare (short/medium):
    http://cafehayek.com/2009/08/health-care-wisdom.html

    Why allowing insurance companies to sell across state lines is a winner in healthcare (short):
    http://mjperry.blogspot.com/2009/08/competition-cure.html

  International War Against Radical Islam

    Iran’s new defense minister (medium):
    http://www.slate.com/id/2226110/

    As you probably know, Attorney General Holder has appointed a special prosecutor to look into CIA interrogation methods.  Linked here are three articles from the site of a constitutional lawyer.  In sum they are lengthy but provide a thorough analysis (and the absurdity) of this witch hunt:
    http://www.powerlineblog.com/archives/2009/08/024363.php
    http://www.powerlineblog.com/archives/2009/08/024362.php
    http://www.powerlineblog.com/archives/2009/08/024361.php

The Market
    
    Technical

    The Averages (DJIA 9509, S&P 1025) closed within their up trends off the March lows (8754-10493, S&P 961-1180).  The VIX remains below the upper boundary of the down trend off its October 2008 high.

    Nevertheless, yesterday’s pin action was not all that great.  Stocks traded up strongly in the early morning, then gave it all back to close basically flat.  The internal momentum indicators were weak.  This could mean that another half hearted correction is in the offing; if so, our Portfolios will continue to nibble away.

*************************************

    Thoughts from Trader Mike:
    http://tradermike.net/2009/08/august_24_2009_stock_market_recap

   Fundamental
     
    This is a great must read article on the psychology of investing (long):
    http://online.wsj.com/article/SB20001424052970204313604574326223160094150.html#mod=todays_us_the_journal_report

     Headlines

     The stories that the chattering class spent its time on yesterday were (1) Dick Boves’ article on coming bankruptcies in the regional banks and (2) Nouriel Roubini’s editorial moving his economic forecast from a ‘U’ recovery to a ‘W’.  Both of these pieces were linked to in yesterday’s Morning Call.





Posted 08-25-2009 8:29 AM by Steve Cook