Wednesday, August 3, 2011


Treasuries keep their AAA rating with a negative outlook.

As expected.

The drop in crude over the last week should serve as a tailwind to growth now -- particualry if it continues.

GM's monthly sales were basically in line with expectations (up 8% vs. expectations of up 7%).

This morning's personal income and spending report was weak, but it was already included in last week's advance seccond-quarter 2011 GDP report.

The one important feature, beyond the month-over-month drop in nominal spending, was the increase in the savings rate to almost 5.5%.

This means that the consumer's blance sheet is continuing to be on the mend.

But we need more employment gains to produce an improving personal consumption expenditure and income growth picture.