Short week closed with some horribly bad news

People are not paying attention to the data; they are paying attention to the Fed

Government released revision to the GDP: -.7

The assumption of deflation is cooked into the number

Most Q2 data is weak

Q1 Corporate profits plunged by 5.9%

JP Morgan announced 5,000 layoffs

Corporations are already levered up to the max

May Chicago PMI plunged back down to 46.2 - close to March's -year low

April Durable Goods fell .5

March Services PMI fell to 56.4 - second monthly drop

May Dallas Fed Manufacturing crashed to -20.8; fifth consecutive monthly decline

The Fed has never predicted a recession; in fact they have forecasted economic growth while in a recession

Bloomberg Consumer Comfort Index: fell for the 7th consecutive week

There are fewer good jobs available and if someone loses their job the are likely to have to take one they are overqualified for

The Fed is too concerned about maintaining the illusion of prosperity to allow genuine prosperity

They are propping up the stock market and the housing market, pretending everything is OK, and allowing the government to continue deficit spending

People still think the Fed will raise interest rates; the most we would get is a trivial hike< just to say they raised rates to get things back to normal

There is no more normal anymore; the new normal is interest rates at zero and perpetual QE until the whole thing blows up

How can we expect to learn from our ancestors when we can't even learn from our own mistakes?