If you thought volatility in stocks was beyond ridiculous, we hope you have been keeping an eye out on what happens to the US economy when the central planning bureau takes over. Case in point: the Dallas Fed Manufacturing index of General Business Activity was just released, and it is a stunner: after coming in at -4 in June, and expectations were for a gradual improvement in July to -2.5, the actual released number was -21! And of course after the usual downward revisions as per page 1 of the Chinese data presentation manual, in which superfluous zeros for negative numbers are strongly encouraged to be eliminated , this will likely end up being something like -210 when it is revised next month. But the market does not care: after all it can pretend Americans are buying homes until next month’s revision indicates that new homes sales in June were actually a negative (is it possible? who cares – not Cisco routers).
From the Dallas Fed:
Looks like the name of the game is throw out bogus numbers and revise later.