-- Posted Tuesday, 10 January 2012 | | Disqus

There were signs yesterday that although Americans went deeper in hock to get through the holiday season, their dietary habits were at least improving somewhat. In separate news items, it was reported that  installment debt jumped a whopping 9.9% in November, while the company that makes Twinkies and Wonder Bread had filed for bankruptcy. Based on the news, dietitians probably had more cause for optimism about the state of the Union than investors.  Whatever the case, neither item had much impact on Wall Street, where stocks continued to patiently bide their time in gluttonous anticipation of news sufficient to reignite the massive short-squeeze that kicked off the New Year.

Concerning the borrowing binge by consumers, it was the biggest jump since November 2001, when they economy started to bounce back from the 9/11 attack.  The data did not include mortgage borrowing, just revolving credit for things Americans buy with charge cards, but it left no doubt that the buy-now, pay-later attitude that has buried the economy with debt is alive and kicking after more than three years of hard times. The banks that were the source of this credit could be likened to rent-to-own furniture operators, since they know that many of the borrowers will find themselves on the ropes when the bills come due with a 24.99% interest charge tacked on. Still, if it provided an uptick for retailers, who’s to quibble?

Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indication of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts.  Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2011, Rick Ackerman. All Rights Reserved.www.rickackerman.com

-- Posted Tuesday, 10 January 2012 | Digg This Article | Source: GoldSeek.com

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