Morning Journal-Defective government by design

Economics

This Week’s Data

The International Council of Shopping Centers reported weekly sales of major retailers flat versus the prior week but up 2.6% versus the comparable period last year; Redbook Research reported month to date retail chain store sales up 1.7% versus the similar timeframe the prior month but down 1.1% on a year over year basis.

June industrial production rose 0.4% in line with expectations while capacity utilization came in at 78.9 versus estimates of 79.2,
http://mjperry.blogspot.com/2012/07/june-industrial-production-highlights.html

The June consumer price index was reported unchanged versus forecasts of +0.1%; core CPI was up 0.2% as anticipated.
http://www.calculatedriskblog.com/2012/07/bls-cpi-unchanged-in-june.html

Weekly mortgage applications soared 16.9% but purchase applications were down 0.1%.
http://www.calculatedriskblog.com/2012/07/mba-record-low-mortgage-rates-lead-to.html


June housing starts rose 0.7% versus expectations of a 0.5% increase; building permits fell 0.4%, in line with estimates.
http://www.calculatedriskblog.com/2012/07/housing-starts-increased-to-760.html

Other

Builder confidence continues to rise (short):
http://mjperry.blogspot.com/2012/07/builder-confidence-rises-to-5-year-high.html

The case for inflation (medium):
http://www.zerohedge.com/news/guest-post-why-i-still-fear-inflation

Politics

Domestic

We are all in this together (medium):
http://www.nationalreview.com/articles/309606/obama-against-self-made-man-rich-lowry

Hope, change and youth (medium):
http://www.ocregister.com/opinion/young-363612-muslim-world.html

Defective government by design (medium and today’s must read):
http://www.ritholtz.com/blog/2012/07/defective-government-by-design/

Capitalism versus cronyism (2 minute video):
http://www.zerohedge.com/news/capitalism-versus-cronyism

An inside look at inflation (medium):
http://advisorperspectives.com/dshort/guest/Shedlock-120717-Government-Role-in-Inflation.php

News on Stocks in Our Portfolios

More earnings per share reports:

Reported Expected

Johnson & Johnson $1.30 $1.29
Schwab .20 .17
Blackrock 3.10 3.03

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.