Econ 101

It's really quite simple. When people have the happies they spend. When the rabbits are frightened they hoard and don't spend.

You're thinking no it's not that simple but yes it is. I don't just follow the stock market; I watch how the summer vacation/travel season is and - more importantly - how the Christmas buying season is.

This year the Christmas buying season sucked. This is a very important indicator. The rabbits are frightened and staying around the den and NOT spending. Therefore retailers are feeling the pinch and cutting jobs. Therefore unemployment has risen. You see the picture yes?

For now I'm ignoring the housing issue (in regards to this post and Econ 101) because it was a *created* mess that should've been corrected sooner. I will say this - I think lowering the interest rates to bolster confidence and encourage the frightened rabbits to spend was a good thing. Problem was they dinked with it tooooo long. It should've been allowed to self correct sooner than it was.

So - if we don't go a buying the economy suffers - is that what I'm saying? Well actually yes it is. I still find the best economic indicators are for the retailers. This doesn't mean go spend spend spend. Rather *think*. Everything best in moderation. Panic is bad. Rational thought is good.

Small movements Ellie - small movements.

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the picture above was taken from the top of The World Trade Center -- Baltimore and it was taken of the shopping area of The Inner Harbor.