Not much action in the markets yesterday. The Dow rose 30 points. It is now well above the point at which the post-’29 crash bounce peaked out.
Gold didn’t move yesterday. It remained at $1,139.
Mortgage delinquencies hit a new record in the third quarter. And producer prices came in lower than expected. These are both indications of a weakening, deflation-prone economy.
Perhaps this is what prompted Mr. Ben Bernanke to tell the world that he may keep rates lower, for longer, than he thought…and perhaps forever.
“Bernanke signals ‘extended’ low-rate period may become longer,” reports Bloomberg.
Today, we discover that “1 in 6 hungry in America last year.” That is the headline in the USA Today. If you believe the report, 49 million people went hungry at some point in 2008, the highest number since the government began keeping track in 1995.
Meanwhile, we learn – in the same paper – that “Rising obesity will cost the USA $344 billion.” That’s what fat people cost the nation annually, equal to 21% of health-care spending.
The two problems should cancel each other out, shouldn’t they?
Oddly, the states with the greatest girths are also the poorest. Mississippi is number one in fat. It’s also the poorest state. Could it be that fat people are going hungry? Is this a good thing; or a bad thing?
for The Daily Reckoning Australia