Econintersect’s Analysis Summary for w/e 24 December 2010

The week, the summary article was posted in Econintersect’s Opinion Blog questioning Should the Rich Be Taxed at All?

Weekly Economic Release Scorecard:

Item Headline Analysis
Personal Income and Outlays Up 0.3% Positive for 4Q2010 GDP
New Home Sales Up 5.5% MoM Unadjusted sales are lower
Durable Goods New Orders decreased 1.3% Old vs New Normal – It is up in the New Normal
BLS Participation Rate   Likely wrong as it does not agree with 2010 Census
Existing Home Sales Up 5.6% Likely up 5.6% over a terrible October
3Q2010 GDP Revised up to 2.6% Data points to a lower 4Q2010
ECB Lender of Last Resort   Ignoring the root of the crisis
Coming Economic Crisis   Bond crisis will force currently unexpected change in course
Economic Thoughts   Savings, Work, Keynes and Policy Realism
CFNAI Down to -0.46 Essentially flat
New Tax Law Stimulus   Cost $554 billion and gaining only $368 billion
China Will Grow Strongly   Even with the government’s slowing the economy
The Great Debate   Stimulus – Supply or Demand Side
Auto Manufacture in China   China will manufacture 1.5 times more autos than USA in 2011
Investment Thoughts (opinion)   market timing rules based on price-earnings-ratios are generally inferior to buy-and-hold rules