The Path

The point where I was discouraged by the information was the drop of 0.7% in Retail, stripping out Auto sales. Wholesale Prices are exhibiting the Joint relationship it enjoys with Retail Pricing: Wholesale pricing pressing up Retail almost 1:1 when advancing, but showing a 5:2 Price reduction capacity. This means that Retail pricing will not retreat without sustained Wholesale price reduction over Time, and rarely without a Period of Retail Sales; something all Retail is reluctant to engage before the Christmas season. (Those Numbers used are not precise, but are used only for indication purposes; most Numbers given in One in relationship to a decimal fraction of One.)

Politicians make the worst of Economists, especially if they are Senators. The real Problem to Financials, which I have reported before, is their hesitation to Write Down their Losses and get rid of the Financial Crisis with decisive acceptance. Now, the Senators are calling upon the Federal Government to delay the Write Down even longer, obviously with the Intent to cost the Taxpayers even more, but gaining Politicians support in the coming Election. Students should realize that All that glitters, is a sickly yellow Paint.

I agree with Paul Krugman on this One, and it makes me worry. Should a compulsory Tax medium be allowed to artificially floor what is basically Private investment decisions? I don’t think so, and find regulation of those Underwriting decisions to only worsen the Conditions. We are starting to imitate the economic conditions of the Third Reich in the 1930s, where business failure was forestalled by Government mandate, with adoption of a unity of Private Sector revenues and Government taxes. It might not seem bad, as the Third Reich economy did well in the 1930s until the invasion of the Sudetenland. The Problem arose, though, that decisions reverted to a central authority, which had a very poor agenda. Such a political agenda is not expected in the United States (though when are We going to get out of Iraq?), but it is likely that We are going to invest another Trillion in bad mortgages. lgl