Morning Audibles 8.26.10 - Out this Morning - Be Back Soon

I'm going to be out most of the morning, so I'm just going to have to keep it simple, and just give you a primer on what's going on this morning, and utilize the support of my new assistant to explain to you the debt problem...

Stocks Rebound From Seven-Week Low, U.S. Futures Climb

http://www.bloomberg.com/news/2010-08-26/asian-stocks-copper-rise-yen-weakens-on-speculation-japan-may-intervene.html

Exceprt:
Stocks rebounded from a seven-week low, U.S. index futures gained and commodities advanced as earnings improved and speculation increased that the Federal Reserve will act to support the U.S. recovery. The yen weakened.


(CV Raises hand in rooms and asks): "Is this the same FED that was saying this a few weeks ago? 'Nevertheless, most official and private forecasters still expect trend or above-trend growth.  Last week’s FOMC statement noted that “…the Committee anticipates a gradual return to higher levels of resource utilization…,” which we interpret as growth of around 3% coupled with a modest decline in the unemployment rate to 9% or a bit below over the next year.  And according to the August 2010 survey by Blue Chip Economic Indicators, Inc., the average private-sector forecaster still expects real GDP growth of 2.4% in the third quarter, 2.7% in the fourth quarter, and 3% in 2011 (on a Q4/Q4 basis), as well as a drop in the unemployment rate from 9.5% now to 8.8% at the end of 2010.'... Just asking? - I want to get my facts straight


“QE No. 2 is going to come over the next quarter,” Alain Bokobza, (who is changing his name to "bazooka") the head of multiasset strategy at Societe Generale SA in Paris, said on Bloomberg Television’s “On The Move with Francine Lacqua.” “This might be a trigger to allocate out of bonds into more riskier assets including equities or commodities.”


The gain in U.S. futures indicated the S&P 500 will advance for a second day. A report may show claims for jobless benefits declined to 490,000 last week from a nine-month high of half a million the prior week, according to a Bloomberg survey of 48 economists. The Labor Department is due to release the data today at 8:30 a.m. in Washington. U.S. gross domestic product probably expanded at a 1.4 percent pace in the second quarter, down from the 2.4 percent rate calculated last month, a Bloomberg survey indicated before a Commerce Department report due tomorrow.


In other news, the Labor Department and the BEA are scheduled to announce that the "great Pumpkin will bring toys to all boys and girls on October 31st, When that fails to occur, they'll remind you that Santa will arrive on the night of December 25th... and when that doesn't happen, the tooth fairy will make a few unscheduled appearances sometime... To be determined later...


All I really want to know is "How Much Is This Costing Me?"... This is where I'll need the assistance of my lovely new assistant to explain it to you (on account of CV is busy this morning)...

http://www.usdebtclock.org/

Here's how it got to be that way... (Turns out it's just a WORD thing after all)...

But relax... There's a a guy who can solve all of this... He's just gotta finish his lobster dinner first...

"Down Down Down"