- US Nov trade balance improve to -$40.4B (better than expect, -$51.0B), prior -56.7B
- US Dec M/M retail sales - 2.7% (worse, -1.2%), prior -2.1%
- US Dec M/M retail sales ex-auto - 3.1% (worse, -1.4%), prior -2.5%
- Core PPI Dec +0.2% (better, 0.1%), prior 0.1%
- Core CPI Dec 0.0% (worse, 0.1%), prior 0.0%
- Weekly Initial claims +524k (worse, +503k), prior 470k
- Industrial production Dec -2.0%, (worse, -1.0%), prior 1.3%
Worse economic data is kind of an expected fact, so I won't be too worry about it at this moment.
Also, ppl concern & become so worry about 2009 USA government will run to a huge deficit year (more than $1T for sure), because they don't understand accounting.
This time the deficit is being used to buy assets instead of spending them.
If T-bill interest rate is only 1% while the government will get a return of at least 5% in return on the preferred shares and bad bonds it purchased.
So u can treat the high deficit as leverage instead of expenses.
But for an non-profit organization financial statement, that's how they always present.
That's the reason why ppl still willing to lent $$ to USA government, because those bonds in certain degree back-up by assets.
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