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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Imports of Goods, Balance of Payments View (Graph)

Imports of Goods, Balance of Payments View (Monthly)



Imports are falling like a lead brick. The drop in the last six months is almost five times the size of the drop of the previous recession. The entire previous recession.

Today's Import/Export report indicates that this is likely to continue.

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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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