What's going on with short-term deficit is minor compared to the problem that is looming. But if they're ignoring the big problem, it's not surprising they're ignoring the near-term issues.
The third-quarter Employment Cost Index is ... reassuring in the sense that labor costs as measured on this index remain very contained, in contrast to some other labor cost indexes.
There is great uncertainty about corporate earnings.
Having imports grow as the economy is slowing is telling you that American companies are facing great competitive pressure, especially in capital equipment. It doesn't help American companies because international competition remains very, very strong.
There's no signal that the housing market is really deteriorating. That red flag isn't there.
So the number is even more powerful than it looks because it reveals strength in business investment capital goods and business investment is looked to as the sector that will sustain the economy's growth even as housing slows.
This will probably be of great satisfaction to the Fed and will convince them that economic growth is on track without worrying them that interest rates are seriously too low.
The valuations on tech stocks are so high that they've been an issue for a long time. These stocks have an ownership base that is prone to panic.
The outlook on the economy is still subject to great uncertainty, but it's quite clear that there was no stumbling underway when the hurricanes hit.
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