Juggling Dynamite

Danielle was a guest with Jim Goddard on Talk Digital Network talking about recent trends in the world economy and markets. You can listen to an audio clip here.

The latest look at margin debt levels (levered speculators) in the context of the secular bear in the S&P that began in 2000 is breathtaking to say the least. The available data shows to the end of November and the trend may well have become even more extreme on the market advance in December. The all time high in negative net worth for participants at the end of last month suggests that the vast majority of those who are willing and able to buy stocks today are already fully loaded on this crazy train.
See further explanation here.

As I took my daughter to the mall yesterday to use her gift cards from Christmas, I could not help but notice the 70 to 80% off signs everywhere. Living in a world of too much stuff does offer some savings for consumers. Slashed margins also suggest however ongoing declines and consolidation for retailers, retail real estate, retail construction, consumption taxes, oh yes and GDP that is 70% based on consumer spending totals. But all necessary pain to get rid of the excess inventory and capacity plaguing the global economy today post-credit bubble.

Bargain Fever” Author Mark Ellwood discusses post-holiday retail shopping. Here is a direct video link.