Still on the beach today, but I came in to check on the market action which appears to be calm. The main market moves are due to the Japanese currency movement overnight. (It is amazing how at this moment all market direction is based on currency movement overseas with all retail investors out of the market and computers running the show)
As for the economic data this morning: July personal income rose .2% and consumer spending rose .4%. The savings rate fell to 5.9%. This all means that consumers last month were spending more and saving less. They are still confused on whether we are entering a "double dip" recession or we are in the early stages of recovery.
Unfortunately, it is neither. We entered a depression in December 2007 and have not left. The stock market rebound and economic euphoria are identical to what we saw in the dead cat bounce in 1932.
Lost on the media's radar is also the fact that consumers are spending more because they are no longer paying their mortgages. Fortunately, with all Too Big Too Fail banks and Fannie/Freddie nationalized this is no longer a concern.
Until is reflected in the dollar's value. That will continue to be measured daily by gold and silver.