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Muddling Through

October 8, 2012 – 5:05 pm

In recent weeks we have seen improving but still poor economic numbers. Everyday we get a mixed signal on the economy. Last week, we had PMI numbers above 50 and improving, but factory orders down 5.2%. Though removing transportation factory orders were up for the core goods .7%. However, at the same time, we have higher inventories not seen since 1992 meaning that final demand is weak. Add to that the 44 months of unemployment being higher than 8%, which has not happened since the 1930’s and you get an economy that is, has, and will continue to struggle.

Maybe we will get better direction once the presidential election is over. So far, Washington has been a net negative for the economy with both parties unable or unwilling to agree on anything. Their finger pointing is doing nothing to provide stable and clear regulations, fiscal restraint or for that matter fiscal responsibility or faith and comfort in the political process. These things are needed for people and corporations to invest in our economy. Corporations are sitting on the largest cash horde ever, having the strongest balance sheets in history and yet they refrain from investing in themselves or in our economy.

Washington needs to change or the people will make the change for them. Maybe we should just vote them all out and start over.

Good Trading
Steve Peasley

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