The Commerce Department reported a 0.4% drop in retail sales (U.S. retail sales slump for second straight month; Reuters). Dumb Money hoped for a better figure, which is pathetic. The global recession saw China's exports drop (China's exports sink, but factory investment rises; AP). Exports drop but China, at least partially, is able to offset that drop with a domestic increase in factory investment. China benefits from their increase in domestic development and capitalistic approach to business and equity markets.
U.S. exports have collapsed as well, and so have imports but at a slower pace, and the trade deficit continue to accumulate, but at a slower pace. The politically sensitive deficit with China continues to increase. The housing market continues to melt away. Dumb Money sees signs of economic stability but admits that they are at low levels (Trade, housing data more stable, but still weak; AP). Another bubble of hope is created by Dumb Money which will be busted by reality.
More economic problems for the U.S. come from the Treasury, which reported a record fall in tax revenues for the month of April (U.S. posts first April budget deficit since 1983; Reuters). An accounting 'gimmick' has been used to not show the impact of the TARP and other bailouts since the Obamanites don't wish to be faced with high deficit numbers. Whatever it takes to create an illusion which they can try to sell to the public.
China reported an increase in retail sales (China retail sales jump, industrial output slows; AP). Strong domestic demand has given China a cushion while carefully placed government projects provide a further boost to the country. China seems to, at least for now, learn from previous mistakes made by other countries and tries to avoid those. China, for a welcomed change, does not blame the markets but rightfully puts the blame on market participants and their lack of knowledge.
U.S. exports have collapsed as well, and so have imports but at a slower pace, and the trade deficit continue to accumulate, but at a slower pace. The politically sensitive deficit with China continues to increase. The housing market continues to melt away. Dumb Money sees signs of economic stability but admits that they are at low levels (Trade, housing data more stable, but still weak; AP). Another bubble of hope is created by Dumb Money which will be busted by reality.
More economic problems for the U.S. come from the Treasury, which reported a record fall in tax revenues for the month of April (U.S. posts first April budget deficit since 1983; Reuters). An accounting 'gimmick' has been used to not show the impact of the TARP and other bailouts since the Obamanites don't wish to be faced with high deficit numbers. Whatever it takes to create an illusion which they can try to sell to the public.
China reported an increase in retail sales (China retail sales jump, industrial output slows; AP). Strong domestic demand has given China a cushion while carefully placed government projects provide a further boost to the country. China seems to, at least for now, learn from previous mistakes made by other countries and tries to avoid those. China, for a welcomed change, does not blame the markets but rightfully puts the blame on market participants and their lack of knowledge.
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