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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (54208)	8/2/2006 4:53:04 PM
From: mishedlo	Respond to of 116555

Soft Market Debris globaleconomicanalysis.blogspot.com Mish Elroy, thanks for your help and those links. It makes for a much better piece. Mish

To: Elroy Jetson who wrote (54208)	8/2/2006 5:28:01 PM
From: mishedlo	Respond to of 116555

Toyota outsold Ford in U.S. for first month ever Amid steep gas prices, Toyota Motor Corp. rode its reputation for fuel-efficient cars to a double-digit sales increase in July and outsold Ford in the U.S. for the first month ever. Honda Motor Co. also reported robust sales. U.S. automakers experienced a moribund July as sales plummeted from a year ago, when heavy discounts spurred a near record month for the auto industry. For General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler Group, the steepest declines were in trucks and sport utility vehicles, the high-margin items on which the three companies are heavily dependent. .... buffalonews.com

To: Elroy Jetson who wrote (54208)	8/2/2006 8:00:58 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

posted on the FOOL George Bush, Dick Cheney and Donald Rumsfeld are flying on Air Force One. The President looks at the Vice President, chuckles, and says, "You know, I could throw a $1,000 bill out the window right now and make somebody very happy." The Vice President shrugs and says, "Well, I could throw 10 $100 bills out the window and make 10 people very happy." Not to be outdone, the Secretary of Defense says, "Of course, then, I could throw 100 $10 bills out the window and make a hundred people very happy." The pilot rolls his eyes and says to the co-pilot, "Such arrogant fools back there. Heck, I could throw the three of them out the window and make 56 million people unbelievably happy."

To: Elroy Jetson who wrote (54208)	8/2/2006 8:11:00 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Don't Shoot Ben and Don't Short Bonds Allow us to share with you an open secret. Ben Bernanke, the new-ish Chairman of the Federal Reserve, is not only one of the foremost economists of his generation; he is also one of the clearest speakers in a profession whose practitioners are often tongue-tied as well as three-handed. [It is very tough to not gag right there and stop reading - What a bunch of nonsense - Mish] .... .... Bottom Line The logic of a forward-looking approach to policymaking and the Fed’s forecasts themselves whispered, “pause” in June. Data released since then, and the market’s warm embrace of the Fed’s tough love in June, now shout not just “pause,” but “stop!” And that’s the case in spite of the 0.3% print on the latest core CPI. As Mr. Bernanke told the Senators, there is not much the Fed can do about last month’s inflation number. As the housing market rolls over, downside risks to growth must rise in importance in the eyes of responsible, forward-looking central bankers. With all due respect to Mae West, too much of a good thing is not always a good thing. Indeed here at PIMCO we believe the Fed has already gone too far. That means it is likely to reverse course within the next 6-9 months, in line with past experience – even though this has been a very different cycle. As Bill Gross intoned in his August Investment Outlook, the Fed tightening-inspired bear market in bonds is over.3 A new bull market is underway. Easing, probably serious easing, is coming into view on a 2007 horizon. Our clients’ portfolios are positioned accordingly. Paul McCulley Managing Director mcculley@pimco.com Andrew Balls Senior Vice President andrew.balls@pimco.com pimco.com