Austerity and the Economy

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	Tuesday August 2, 2011 Visit Our Website | Unsubscribe Trouble Reading this Email? - Click Here Debt Deal Passed Austerity and the Economy Keep an Eye on the Fed Fellow Investor, The debt deal in Congress is as good as passed. And yet stocks sold off hard yesterday. And today isn't shaping up to be much better. The reason, in my opinion, has to do with government spending cuts, austerity and what that means for economic growth. Yesterday, I asked the question "where will new demand come from?" And I recently received a reader question that hits the same theme... Simon P asked: You keep making comments about government spending reductions detrimentally affecting the economy on various levels. Would you please expand on this some in a future newsletter. I am inclined to disagree but am trying to keep an open mind. Without a tempered and relatively detailed explanation of your thoughts in this regard, it becomes difficult to distinguish it from what many of us see as the stupid, blind, fear-mongering rhetoric we hear not only from the White House, but also most of the media. Well, clearly, with high unemployment, consumer demand and spending is lower as people have less money in their pocket. A recent editorial from The New York Times columnist David Leonhardt says this about job cuts due to reduced spending (austerity) at the state and local level: In round numbers, state and local governments have cut about a half million jobs over the last two years. If they had continued to hire at their previous pace - expanding as the population expanded - they would have added about a half million jobs. He even provided a nice chart to show us the difference:   It's logical that government would cut jobs, or hire less, as it cuts spending. Anecdotal evidence bears this out. Some other interesting statistics from the NonFarm Payroll report from July 8: the "labor force participation rate", or the number of adults working or looking for work, is 64.1%, the lowest level since 1983... [continue reading at WyattResearch.com]   Click to view the remainder of the article... Mystery Woman Collects 8.2% from Her Bank and So Can You Ms. P----- S-----, age 58 and former airline employee, collects an extra $7,200 from a special bank in New York. She's not a trader, not an insider... just an everyday American collecting an 8.2% yield from a specialized bank. Who is this woman? And more importantly how can you start collecting 8.2%? All you need is less than $20, a brokerage account, and a desire for life changing wealth. Click here for the details.   Market Snapshot US Markets - August 1 Close Dow Jones 12,132.49 -10.75 (-0.09%) S&P 500 1,286.94 -5.34 (-0.41%) Nasdaq 2,744.61 -11.77 (-0.43%) Currencies EUR/USD 1.424 -0.013 (-0.908%) USD/JPY 77.235 -0.15 (-0.194%) GBP/USD 1.627 -0.004 (-0.251%) Recent issues of Daily Profit Debt Deal Done: Will the U.S. Get Downgraded? Mixed Economic Data Who's Regulating the Regulators? more» Valuable Investment Ideas From Wyatt Investment Research A Small Cap Company Worth Noting The announcement of an upcoming healthcare reform coupled with a loss of patents led to the inevitable - a sharp increase in brand name pharmaceuticals. more» A Gold and Silver Buyer's Guide In this report I explain exactly how to buy precious metals, how to store them, as well as when, how and why to sell. more» The Best Income Strategy for Small Caps My favorite options strategy is a vertical bull and bear credit spread. Essentially, this strategy lets you make money even if a security goes nowhere... more» Independent Investment Services Wyatt Investment Research provides investment research that is independent of the back door deals and machinations of Wall Street. more» Need to retrieve your password in order to view our articles? Click here. Disclaimer & Important Information Wyatt Investment Research and Daily Profit is owned and published by Business Financial Publishing, LLC of Washington D.C. Business Financial Publishing is neither a registered investment adviser nor a broker/dealer. Readers are advised that this electronic publication is issued solely for information purposes and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. We encourage you to review our full Disclaimer and Disclosure policies. To view our Disclaimer Policy, please click here. To view our Disclosure Policy, please click here You are subscribed with the following email address: ignoble.experiment@arconati.us To unsubscribe from this newsletter, please click here. If you believe this communication to be a mistake or unsolicited, please e-mail abuse@bfpnewsletters.com with details regarding your situation, and we will be sure to promptly investigate your situation. Copyright (c) 2011 Business Financial Publishing, LLC. | Privacy Policy Wyatt Investment Research c/o Business Financial Publishing 65 Railroad Street Richmond, VT 05477 PO Box 790