New Records

by Larry Levin

Today was a great day for Amerika. Today the United States of Amerika set two new records in this current environment of ever increasing equity gains on low volume. One of the new records is a massive drop in tax receipts and the other is a huge increase in food stamp recipients.

This should only come as a surprise to the gullible, but the so-called economic recovery isn't a recovery at all. If it were, tax receipts would be increasing. If it were a real recovery we'd be recovering from that which caused the "great recession:" tight credit. Credit is still tight so we are neither recovering from the cause nor are we seeing economic benefits from the Keynesian mad spening across the globe: increased tax revenue. In fact, tax revenue is dropping like a rock.

Last month (April) the US government admitted taxes fell sharply, which helped cause its latest record - an $83 billion YoY decline. April also marked a record 19th consecutive monthly budget deficit. Last year's deficit was "just" $20.9 billion in April. What's more, April is usually a fairly good month for tax receipts but not this time. As I said above, this recent month's tax income has in a word: sucked.

From Reuters we learn of the next record, which is an all time high in food stamp recipients.

http://www.reuters.com/article/idUSTRE6465E220100507

Nearly 40 million Americans received food stamps -- the latest in an ever-higher string of record enrollment that dates from December 2008 and the U.S. recession, according to a government update.

Food stamps are the primary federal anti-hunger program, helping poor people buy food. Enrollment is highest during times of economic distress. The jobless rate was 9.9 percent, the government said on Friday.

"This is the highest share of the U.S. population on SNAP/food stamps," said the anti-hunger group Food Research and Action Center, using the new name for food stamps, Supplemental Nutrition Assistance Program (SNAP). "Research suggests that one in three eligible people are not receiving ... benefits."

Enrollment has set a record each month since reaching 31.78 million in December 2008. USDA estimates enrollment will average 40.5 million people this fiscal year, which ends Sept 30, at a cost of up to $59 billion. For fiscal 2011, average enrollment is forecast for 43.3 million people.

Including children, this is 12% of the ENTIRE POPULATION! Moreover, if you add in those that are not receiving the benefits, it is said to be as high as 20% of the ENTIRE POPULATION.

What's the difference between the Great Depression of the 1930's and the so-called Great Recession of today? Technology. In the 1930's we see depressing pictures of food lines; however, technology has replaced that with the new food stamp credit card. No lines - no press - no pictures - no stigma - no history - no problem.

But don't worry about these awesome records folks, as I wrote yesterday things are back to normal. The market is going back up on pathetically low volume. Boo-ya!



Previous Day's Trading Room Results:

Trade Date: 5/12/10

E-Mini S&P Trades*
(before fees and commissions):

1) VA buy @ 9:19am at 1162.50 = +1.25 & +1.00 (2 lots)

2) Engf sell @ 9:47am at 1163.00 = -.50 (1 lot)

2) Algorithm positions (16)

3) “Reading the Tape” positions (17) …combined Secret’s, Algo, & “Reading the Tape” total… +9.00



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