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Retail Sales to Surprise to the Upside, Don’t Buy Into It

The calendar for the week has a key piece of data that you’ll want to watch out for. We have August Retail Sales data to be released on Wednesday morning. The consensus among a survey of economists conducted by Bloomberg suggests that this figure will decline by 2.1% after having surged 2.7% in the month prior. This may be overly pessimistic as a reading of -2.1% on the sales side would imply that spending among the US public was at its worst since last December, when it tanked 3.2%. Keep in mind that since the start of the year, Retail Sales have only shrunk in two of the months. Such a swing to the downside would be a sharp change in the public’s mindset.

Note that when excluding automobiles from the metric, the consensus forecast is set for an increase of 0.2%. This leads one to believe that automobile sales plummeted throughout the month, causing the broader metric to sink as well. This might not necessarily true. The popular “Cash for Clunkers” program was extended during this period and saw car purchases soar. In fact, there was a 25% jump in the number of autos sold. So there is little reason to believe that August saw such a pathetic performance in Retail Sales.

What to take away from this: Retail traders may splurge on stocks when they see that this number is surprisingly high. But one must ask themselves if this high figure is surely sustainable. Keep in mind that this data is for August and not for September – that’s five weeks back. Cash for Clunkers is over with and there is now little incentive to keep car purchases up. Just moments ago, Philips released it’s Q3 earnings report. In it, they said that the structural recovery in their primary end-markets has been absent. This speaks contrary to that which has been heard from the popular media and other pundits.

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Filed under: Economics, Global Economics, , , , , , , , , , , , , , , ,

BREAKING NEWS: HEDGE FUND MUST GIVE UP CONTROL OF CHRYSLER

HEDGE FUND DOWN

PAPER: Cerberus Capital Management will lose its equity stake in Chrysler LLC’s struggling automotive company as a condition of the Treasury Department’s bailout deal with the U.S. auto maker, according to several people familiar with the matter.

The New York private-equity firm purchased an 80% stake in Chrysler in 2007, promising to bolster the auto maker’s performance by operating as an independent company. The plan, however, collapsed due to an unprecedented slowdown in the U.S. auto industry and a lack of capital at the auto maker to weather the storm…

OBAMA: LET THEM GO BANKRUPT…

Filed under: Politics, , , , , , , , , , , , , , , , , , , , , , ,

GENERAL MOTORS CEO QUITS ON DEMANDS FROM OBAMA

YOU’RE FIRED

WIRE: The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said.

Wagoner’s departure is one of the remarkable strings attached to a new aid package the administration plans to offer GM…

Filed under: Obama, , , , , , , , , , , , , , , , , ,

OBAMA: DETROIT NO LONGER ‘VIABLE’

SURVIVAL OF THE FITTEST

WIRE: In surprising findings to be outlined at the White House on Monday, President Obama has concluded that neither GM nor Chrysler can survive as they now exist. But the White House is sparing them for a month or two, and is promising American consumers that the government will stand behind warranties if the automakers fail…

Tells GM CEO To Head Home…

Filed under: Obama, , , , , , , , , , , , , , , , , , ,

UPDATE – Cops Arrive at Lindsay Lohan’s House, Trying to Issue Warrant (Video)

AP: An arrest warrant has been issued for actress Lindsay Lohan, possibly in connection with a 2007 drunken driving arrest after she crashed her Mercedes-Benz into a tree, police said Saturday.The warrant was issued Friday by a judge in Beverly Hills Superior Court and carries a bail amount of $50,000, police Sgt. Mike Foxen said…

Police: “It is our hope that Ms. Lohan will surrender herself so that this matter can be resolved in a timely manner…”

TMZ: Developing – Cops say there was a disturbance, but trying to issue warrant…

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Filed under: Crime, Humor/Irony, Media, , , , , , , , , , , , ,

California Issues Warrant for Lindsay Lohan (Video)

AP: An arrest warrant has been issued for actress Lindsay Lohan, possibly in connection with a 2007 drunken driving arrest after she crashed her Mercedes-Benz into a tree, police said Saturday.The warrant was issued Friday by a judge in Beverly Hills Superior Court and carries a bail amount of $50,000, police Sgt. Mike Foxen said…

Police: “It is our hope that Ms. Lohan will surrender herself so that this matter can be resolved in a timely manner…”

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Filed under: Humor/Irony, Media, , , , , , , , , , , , , , ,

GM To Cut 47,000 Jobs, Bailout Request Up To $9 Billion

GM To Cut 47,000 Jobs…
Boosts Loan Request by $4.5 Billion…
Considered Then Rejected 3 Bankruptcy Scenarios…
Closing Five Additional Factories

Filed under: Economics, World, , , , , , , , , , ,