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AP (Lies): Stocks Gain On Good News On Economy

From a shameless Associated Press:

Stocks gain on encouraging news about the economy

By STEVE ROTHWELL | June 27, 2013

NEW YORK (AP) — Good news on jobs and consumer spending pushed stocks higher again Thursday. The Dow Jones industrial average and the Standard & Poor’s 500 index rose for a third straight day. Yields on Treasury securities fell for a second day, easing worries that a sudden spike in interest rates could hurt the economy.

Consumer spending rose 0.3 percent last month and incomes increased 0.5 percent, the most in three months, the government reported.

Remember when consumer was a terrible thing, way back under President Bush? (It meant people weren’t saving enough, and they were going into debt.)

The number of Americans seeking unemployment benefits fell 9,000 to 346,000 last week. The report added to evidence that the job market is improving modestly.

And never mind that unemployment claims were up the two previous weeks. Or that the unemployment rate rose last month.

Stocks have rallied this week as investors took advantage of lower prices after a sell-off last week that erased 560 points from the Dow over Wednesday and Thursday. The market swooned after Federal Reserve Chairman Ben Bernanke said that the central bank could cut back on its stimulus later this year and possibly end it next year, if the economy continued to improve…

The truth is the people playing the stock market have seen the latest economic numbers, including the revised GDP for the first quarter, and they realize that the economy is not improving. Which means they have nothing to worry about. Bernanke will continue to print $85 billion dollars a month, which he will pour into the financial markets.

Which is something that the Associated Press has already admitted:

3 Fed officials seek to calm financial markets

By MARTIN CRUTSINGER | June 27, 2013

WASHINGTON (AP) — Federal Reserve officials sought Thursday to calm investors by assuring them the Fed won’t start trimming its bond purchases until the economy has strengthened. They said any pullback in the Fed’s stimulus will hinge on the economy’s performance, not a calendar date…

Chairman Ben Bernanke jolted investors last week when he said the Fed will likely slow its bond buying this year if the economy continues to improve.

William Dudley, president of the Federal Reserve Bank of New York, said Thursday that if the economy proves weaker than the Fed forecasts, he expects the bond purchases to continue…

"If labor market conditions and the economy’s growth momentum were to be less favorable," he said, "I would expect that the asset purchases would continue at a higher pace for longer."

Jerome Powell, a member of the Fed’s board in Washington, said investors appear to have incorrectly concluded that the Fed will taper its purchases soon.

"The path of rates will ultimately depend on the path of the economy," Powell said in an appearance at the Bipartisan Policy Center, a Washington think tank…

A third Fed official, Dennis Lockhart, president of the Atlanta Fed bank, said Thursday that "the pace of purchases, the composition of purchases and the ultimate size of the Fed’s balance sheet still depend on how economic conditions evolve."…

So it’s clear that both the Fed and the stock market are predicting the economy will ‘prove weaker’ for the foreseeable future. But the AP have been told to talk up the Obama economy, and they just can’t help doing it, no matter what the facts are.

This article was posted by Steve Gilbert on Friday, June 28th, 2013. Comments are currently closed.

One Response to “AP (Lies): Stocks Gain On Good News On Economy”

  1. Petronius

    The markets and the economy are being manipulated by the Fed.

    Nobody knows what would happen to the economy if it were left on its own.

    But we got some insight last week when Bernanke dropped hints about tapering off QE. The markets have become addicted to QE. And so Bernanke’s tapering speech spooked the markets, and asset values (stocks, bonds, oil, gold) fell. The DJIA lost about 1000 points in a few days.

    The media talks about an economic recovery but does it really exist? The government’s official yardsticks are unreliable because, as everybody knows, they downplay inflation and unemployment while overstating GDP.

    First quarter GDP was recently revised down from 2.4% to 1.8%.

    We can all agree that there has not been a normal recovery. Whatever recovery may have occurred has been weak and lackluster, and dependent on massive money printing from the Fed. Only about half the asset losses that occurred in the 2008 sub-prime meltdown have been recovered.

    Which raises the question: How is the American economy going to recover when the regime is so busy destroying wealth?

    Taxes are going up. ObamaCare looms on the horizon. The President is about to outlaw 45% of the electric power plants in the country because they burn “clean coal” –– coal that is the-cleanest-in-the-world-but-not-clean-enough-to-suit-him.

    Capital spending by business has dried up.

    Manufacturing is sluggish.

    The real estate market is showing signs that the worst is over, but home prices remain stuck at levels that existed decades ago. Long-term interest rates are now rising and lumber prices falling, which are always bad signs for housing and for the economy in general.

    Unemployment is actually trending up, not down.

    During a period of high unemployment, the government proposes legislation to bring in tens of millions of more immigrants in an apparent move to speed up the process of dissolution.

    Welfare rolls grow to unprecedented levels, then grow even more. Literally tens of millions of Americans have given up looking for work and have left the workforce.

    The only things that seems to be growing are taxes and the size of the Federal government.

    Government spending is on course to bankrupt the country within a few years, and practically nothing has been done to address this situation. Our so-called elected leaders have stopped talking about it, and even refuse to acknowledge the problem exists.

    On the bright side, Uncle Ben’s tapering talk did give the US dollar a boost.

    The US dollar is showing strength against all other assets, but how is that possible, and how long can it last? Bernanke has tripled the money supply, but where has all the money gone? Some experts say the cash is stuck in a bottleneck at the banks, boosting their Dodd-Frank compliance metrics.

    The US dollar is viewed as a safe haven in a world full of economic uncertainty. But the dollar is not really sound, it’s just the healthiest horse in the glue factory.

    Sooner or later that money cat will climb out of the bag. Then what?




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