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Like getting the jist of it because markets are always trying to decide on one thing: are we going up or are we going down? And when they don't know, they go sideway.

I made sure to mention <i>but the manufacturing sector is still strong</i>. Don't worry, I know how to cram in a Beige Book in a couple of lines.

We still have a barrage of data and events ahead of us that will keep markets cautious. Once we have Bernanke's testimony; the FOMC meeting and the employment report out of the way, the bond market will be free to rally, providing we continue getting indications that the economy is not as...

The Beige Book is consistent with what markets were recently pricing when market participants were lowering their expectations about growth and inflation (until yesterday). Real estate is cooling; only 3 out of 12 districts reported solid growth; producers have difficulty passing on higher...

LOL. I was trying to throw cold water over the impression that the Consumer Confidence Index was at an all time high. Looking at this chart, you can see that confidence is not that high. <img src="attachment.php?s=&amp;postid=1051416"/>

Thanks for the correction.

Consumer Confidence is at a FIVE year high, isn't it? Which means since April 2001. In any case, the inflation-risk premium is building up again.

Probably for another two weeks.

Yes, rate increases are expected but for the last few days the yield curve was flattening while markets were lowering their expectations about growth and inflation and now, we're back to where we were a week ago, except this time oil is going down. Markets are in a martini shaker right now and...

Exactly, and the yield curve that was flattening steepened after that.

I think we're on the right track and that the G7 statement won't delay things by much more than a couple of days since there was nothing unexpected from it. http://www.treas.gov/press/releases/js4199.htm

That makes sense. Thanks Ron.

Anybody has an idea why the Health Care Plans sector (^YHOh792 on Yahoo) is still going down while general indices are rebounding? I've noticed that the Health Care Plans stocks that have been weak during the past three weeks are the same stocks that had outperformed their sector during the...

You'll hear from him tomorrow.

So you think that Iraqis deserve what is happening to them? Is that what you're saying?

In the short-term, imported goods become more expensive. In the long-term, there are all kinds of adjustements taking place and the net result is not so clear.

Wednesday, but likely to be eclipsed by Bernanke's testimony Thursday.

Another factor that will contribute to bringing commodity prices down this week is the tendency that stocks will have to move sideways ahead of the Beige Book and Greenspan's testimony. I still think that stocks will move up but not exactly with the kind of fury that would have caused falling...

Thanks Steph. That was a simple but solid explanation, just the way I like it.

Good point. And you got me there because I am not sure about the causal relationship between the $/Euro and oil and gold. Many think that oil occasionaly rallies to make up for the declining value of the dollar but that seems a little exagerated when you take a look at the percentage difference...