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Thursday, July 21, 2011

Mutual Fund Outflows and Debt Rises No Matter The President's Party

Slow news day today. This will probably be my last post of the week. Enjoy!

I have seen this GDP to Debt data in many forms, but never tied to the President's party affiliation. Basically, it doesn't matter is the President is Democrat or Republican when it comes to rising debt to GDP. You can see what has happened since we went off the gold standard in the 70's.

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This is one of those stats that when you see it happening, should concern you about the future performance of the stock market. Mutual funds only carry a small amount of cash. When you see these constant outflows, they will eventually have to sell their positions to cover the outflows.

Equity/Hybrid – Overall equities experienced outflows of $3.41 billion following the $3.84 billion during the prior week, as domestic outflows of $4.06 billion were partially offset by foreign inflows of $648 million. Domestic equities have now experienced outflows in twelve consecutive weeks (totaling $38.6 billion). Note, after 3 positive weeks, the S&P 500 declined by 1.6% for the respective week. Year-to-date, domestic equities have now experienced outflows of $25.8 billion. On the international side, the $648 million of inflows were up slightly from the $630 million of inflows the prior week. Hybrid flows remained positive with $592 million of inflows.
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I think it's funny when reporters try to be uppity and end up making a fool of themselves. Contessa Brewer has this attempt blow up in her face.

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Well it seems that it is legal for the state of Florida to sell you personal information for it's own gain. Florida must be in trouble if it's pimping out the residents for a measly 63 million dollars.

Florida Makes $63M Selling Drivers' Info

The state of Florida made $63 million last year selling what many think is personal information.

Local 10 has learned the Department of Highway Safety and Motor Vehicles is selling people's names, addresses, dates of birth, a list of the vehicles they drive, and it's legal.
"Per federal mandate, there are companies that are entitled to this information. Insurance companies, for example, are entitled to this information. Employers are entitled to this information," said Ann Howard of the Florida Department of Highway Safety and Motor Vehicles.
The state is currently selling this information to companies including Lexus Nexus and Shadow Soft. Those companies gather data on people and then sell that data. The companies must sign contracts with state claiming they won't harass people.
"This information cannot be sold to a company that plans to solicit business, such as companies that want you to come to their ice cream store or companies that want you to buy their vehicles," Howard said.
The state does not sell Social Security numbers or driver's license numbers, and a Florida judge said what the state is doing is legal.No one outside the driver's license office in Lauderhill believed it."This is my own personal information, and I don't think it should be out there," said John Platt."You're kidding me," said Bebe Neice"That's crazy. I didn't have a clue about it," said Mischka Peralto.
The state said selling the information is also a matter of public safety. There are 15.5 million registered drivers in Florida, and the state charges companies 1 cent per electronic file. If a vehicle is recalled, the state of Florida has the latest and most current information on who owns that vehicle, so the manufacturer can notify the owners of the recall.Only judges and law enforcement officers can request their personal information not be sold."
If a company violates the Federal Driver Privacy Protection Act, they do face federal charges and federal fines," Howard said.