Morning Journal-Austerity is not bad for growth

Economics
This Week’s Data

The International Council of Shopping Centers reported weekly sales of major retailers down 2.0% versus the prior week but up 2.8% versus the comparable period last year. Redbook Research reported month to date retail chain store sales up 1.5% versus the similar timeframe last month and up 2.7% on a year over year basis.

January retail sales up 0.4% versus expectations of up 0.8%; ex autos sales were up 0.7% versus estimates of up 0.6%.
http://www.capitalspectator.com/archives/2012/02/a_january_thaw.html#more

Consumer confidence and retail sales (medium):
http://advisorperspectives.com/dshort/guest/Lance-Roberts-120214-Consumer-Confidence-and-Retail-Sales.php

December business inventories rose 0.4% versus forecasts of a 0.5% increase; sales were up a strong 0.7%.

Weekly mortgage applications fell 1.0% while purchase applications dropped 8.4%.
http://www.calculatedriskblog.com/2012/02/mba-purchase-applications-decrease-in.html


The February New York Fed manufacturing survey came in at 19.53 versus expectations of 15.00 and January’s reading of 13.5.
http://www.calculatedriskblog.com/2012/02/ny-fed-survey-manufacturing-activity.html

Other

Auto affordability is the highest since 2009 (short):
http://mjperry.blogspot.com/2012/02/auto-affordability-is-highest-since.html

Wednesday morning humor (3 minute video):
http://gregmankiw.blogspot.com/2012/02/latest-from-standup-economist.html

Austerity is not bad for growth (medium):
http://scottgrannis.blogspot.com/2012/02/federal-budget-update-fiscal-austerity.html

The latest Pulse of Commerce index reading (short):
http://advisorperspectives.com/dshort/updates/Pulse-of-Commerce-Index.php

Politics

Domestic

Catholicism’s pact with the devil (short):
http://scottgrannis.blogspot.com/2012/02/article-of-day.html

Thoughts on Obama’s budget (medium):
http://www.nationalreview.com/articles/290990/spend-tax-repeat-rich-lowry

And (medium):
http://www.realclearmarkets.com/articles/2012/02/14/obamas_class-warfare_tax-the-rich_budget_99517.html

Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at Strategic Stock Investments is to help other investors build wealth and benefit from the investing lessons he learned the hard way.