Dave Callaway tells Market Watch the market was looking for a relief rally. It appears we now need a “cash for Christmas” government program to keep us going…

Econompic points out that auto sales accounts for 1.66% of the 3.50% GDP growth rate reported for third quarter.  Thus,  without government spending, the economy is still in a pickle.  Can we count on the government to keep on spending at this rate forever?

In What will the economic recovery build upon?, the Economic Populist has posted a very thorough piece with charts showing why we don’t have a real recovery – just data clouded by expiring government programs.  Many of the programs, like Cash for clunkers and the $8000 for first time home buyers, will soon represent more debts which are past due.  Well worth the read.

In a related piece over at Commodity Bull Market, the parallels between what the markets, the FED and the president said in 1930 and what has recently been said is provided.  The similarities are scary.

Good thoughts from from Nicholas White on the unintended cost of government manipulation for political gain. Can Retailers Compete With Government’s “Crown Corporations”?

China Stakes has an article which argues China’s expectations for inflation are building, yet it is experiencing deflation presently. China Inflation Expectations Building

Th recent North American “Summit” from a Canadian’s perspective. Mixed Messages from Mexico

Newt Gingrich and Emily Renwick argue for repealing the capital gains tax. Capital Gains Tax: An Argument for Repeal

John Mauldin gives us a summary of Gary Shilling’s recent thoughts.  Slow Long-Term Growth, And Government’s Response

The National Inflation Association suggests what might be next: Cash for Clunkers Could Lead to Government Bulldozing Homes

The Broken Window Fallacy goes something like this: … if a vandal breaks your windshield, that should stimulate the economy since a worker must be employed to replace it and a new sale is generated for the company that makes and sells windshields.   Hmm… taking it to its logical conclusion implies that if we really want to stimulate the economy, we should encourage riots and arson so that ALL buildings and vehicles in America are destroyed.  What’s wrong with this reasoning? The real truth is that this destruction keeps us from growing.  We have to work to get even to where we were before the destruction occured.  Bloomberg‘s Caroline Baum and Research Reloaded have some great thoughts about how  the Cash for Clunkers program -which involves destroying perfectly good cars before their useful life is ended – is a form of the Broken Window Fallacy. We mentioned Volatire’s saying in another post: “Those who can make you believe absurdities can make you commit atrocities.“  When does the government’s reasoning become not just absurd, but start leading blind believers to atrocities of destruction?