Wall Street edges lower as investors mull slow recovery

Stocks fell on Friday, rebounding for a second day in a row from more substantial losses, as concerns about slower economic growth held trading to a tight range.

Do not associate a technical sell-off with any significant economic conclusions. The direction for stocks, sitting at or near support, will have little to do with lie and deny economic data series. Capital flows, seeking protection against further currency debasement, are driving this market.

As for the slow recovery, my response to that is what did you expect? Consumption, the main driver of US national income, is beginning to fade with the reduction of stimulus injections and America begin to defy pop culture by saving. That's right saving a portion of their incomes. In addition, the engine of future growth, domestic private investment, remains flat at best, and the structural trade deficit is beginning to reassert itself. Government consumption and investment, based largely federal spending, continues to support a weakening private sector.

In other words, the massive quantitative easing to date has done affect the economic trends that are just beginning to intensify.

Personal Consumption Expenditures (PCE) As A %GDP and Personal Consumption Expenditures As A %GDP Average from 1947:


Gross Domestic Private Investment (GDPI) As A %GDP and Gross Domestic Private Investment (GDPI) As A %GDP Average from 1947:


Net Exports (NETEX) As A %GDP and Net Exports (NETEX) As A %GDP Average from 1947:


Government Consumption Expenditures and Gross Investment (GCEI) As A %GDP Average from 1947:


Federal Consumption Expenditures and Gross Investment (FED) As A %GDP and Federal Consumption Expenditures and Gross Investment (FED) As A %GDP Average from 1947


Savings (SAV) As A %GDP and Savings (SAV) As A %GDP Average from 1947:


Source: news.yahoo.com