11/24/09 Midday Report: Stocks are down as people hate spending, unless they are spending on cheap shoes

The big news of the day is that the government revised GDP data downward and consumer spending took the brunt of it (which is how it works when consumer spending is 70% of GDP, dipshits).  The new estimates are that there was a 2.8% rise in GDP from this past Q vs. the previously announced 3.5% growth.  While it was inline with the expectations of economists (and we all know what great guessers economists are, which reminds me of the old joke:  Why did the economist cross the road?  Who the fuck cares, now pass the salt.), it showed that the economic resiliency may not be as robust as bulls hoped.  But hey, the economy still grew so round of hummers and lobster tales for Bernanke, right? 

Also in the news today, banks stocks took it in the yingus as the government wants their stimulus funds paid back and people continue to realize the banking system is as healthy as Paris Hitlon's vagina (which of course isn't good since she has herpes).  Additionally, the US fund for bank deposit insurance fell into the red, but don't worry because we can always print more money.

In stock news, DSW shot up on a good earnings report because poor people (US citizens) love them some cheap ass shoes.  Better yet, RVI which owns a disproportionate amount of DSW maintained their huge spread to DSW (a spread larger than the Octomom's punany after dropping out little child protective service kids).  RVI owns around 63% of DSW and yet trades at around 33% of DSW's market cap.  RVI sold it's holdings in Filene's Basement and Value City so all they have now is DSW.  This valuation makes less sense than Ron Artest's singing career or the Lifetime channel (who puts the less in mindless).

The economy can still go either way so as always, be careful out there.

Happy hunting.