<http://jugglingdynamite.com/2012/11/10/a-plutocrat-calls-bs-on-his-peer-group/

See absolute demand index has fallen 10 points. See also rail traffic on pragcap.com. Gas buddy keeps falling so demand is falling…
http://www.consumerindexes.com/

We are now beyond election and sandy but still demand is depressed. I think baby boomers dont want to spend if their taxes are going up. In addition reducing the deficit is a policy 'zig-zag' a la Richard Koo. At the least, the stock market sells off to take profits before taxes rise!!! Unfortunately for politicians their timing could not be worse as a shift in a weak economy will lead to recession.

The last stimulus was passed by 62 in senate 3 republican. This time it will be harder so recession first…then a policy reversal. Q4 earnings estimates SP500 show precipitous fall….

Market should be choppy in Jan and Feb as well due to Q4 numbers being bad.