Economics Update

The average consumer is smarter than Alan Greenspan and the rest of the economic glitterati, because consumer sentiment dropped to a long time low (also here).

In energy, gasoline prices have hit another all time high, and oil prices seemed to have settled comfortably about $110/bbl.

That being said, it's not just oil imports, inflation in non-energy imports in March surged 1.1%, with a year over year increase of 5.4%.

That 1.1% number is the largest jump ever recorded.

There is a smidgen of bright news, the Fed's excrement for cash exchange program did not sell out this time, with only $33.95 billion of the $50 billion offered being taken.

In real estate, we have US banks killing the no down payment loan, which is long overdue. Even with a small amount of skin in the game, home borrowers tend to be much better risks.

Housing is tanking overseas too, with UK mortgage rates going up, despite BoE rate cuts, so they are pushing on a string there too.

But's it's not just us Anglo-Saxons, because Dutch home sales are tanking too, and let's not talk about Spain.

Also, GE released earnings, and they sucked, which surprised the experts, but not me.

People are scared and not buying stuff. GE makes stuff. Any questions.