Federal Government Receipts Dropping Uh Oh (Graph)

Investor pay attention. Federal government receipts are dropping. This is a negative especially on the dollar. It also means that shortfalls are likely to lead to bigger auctions of government securities down the road.

Once this series becomes more widely discussed in the media it is likely to create investor uncertainty about the future. This is never a good thing for the market.

With the S and P 500 near 1000, investors should start to assume a more cautious stance.

A short fall in government receipts is a negative on the dollar, will likely lead to higher long term interest rates, and could lead to crowding out in the corporate securities market.

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