Saw 2 interesting news - US disposal income & China hitting 8% GDP growth

This is an interesting chart. The US consumers disposable is rising but the retail sales have been trailing. Some argues that consumers feel less confidence about their future prefer to save. Other differs saying consumers are repairing their balance sheet to pair down their debts. Actually, both are right but my gut feel is after a while -- the Americans are going to spend again.


The second news is China's GDP grew almost 8% in 09 Q2 (not 5 - 6% that bearish camp hopes for).

July 16 (Bloomberg) -- China’s gross domestic product grew 7.9 percent in the second quarter as the nation became the first of the major economies to rebound from the global recession.

The figure, announced by the statistics bureau in Beijing today, exceeded the 7.8 percent median forecast of 20 economists in a Bloomberg survey and a 6.1 percent gain in the first quarter that was the slowest in almost a decade.

China, the biggest contributor to global growth, overtook Japan as the world’s second-largest stock market by value yesterday after a 4 trillion yuan ($585 billion) stimulus package spurred record lending and boosted share prices. The first-half expansion laid the foundation for meeting the year’s 8 percent growth target for creating jobs and maintaining social stability, the statistics bureau said today.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aXwMekKnYD6I

This reinforced my views of the macro-economics will be better in the coming months. I am not withdrawing my neck from the chopping board betting the US recession will end this year. The world is going to be fine.