Economic News to Watch

Thursday, March 5, 2009

1# - The stock market closed in positive numbers yesterday on the news that China is planning a stimulus. This is an obvious slap in the face to Obama, since his own stimulus was greeted with a free fall market. Adding insult to injury, the market is responding positively to China of all places. China is releasing details this weekend. Watch the market Monday to see if investors give the stimulus a thumbs up. Liberals will make sure to pay attention. If China proposes an Obama style stimulus, they you can be sure there is at least a good deal of bias in the market.

2# - The dollar has been gaining strength over the last few months. This is important because it is a sign that investors expect deflation in the near future. Just to let you know, deflation is worse than inflation and is in part what made the depression such a disaster.

That’s it for today’s quick update.


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