Hefty markup on Dillard’s

In spite of a bleak outlook for consumer spending, many retailers have seen their stocks explode upward in recent months. Some of this can be attributed to a reversal of the excessive pessimism around the March lows in the market, but the price action in recent weeks suggests that some investors (who may have missed the rally) are indiscrimininately getting into the market and that heavily shorted stocks are rising due to short covering. A stock that exemplifies this is Dillard’s Inc. (DDS), which is a regional apparel and home furnishing retailer.

The delusions of fiscal responsibility

The president’s weekly address from August 1 contained the following statement:

“Now, I realize that none of this is much comfort for Americans who are still out of work or struggling to make ends meet.  And when we receive our monthly job report next week, it is likely to show that we are continuing to lose far too many jobs in this country.  As far as I’m concerned, we will not have a recovery as long as we keep losing jobs.  And I won’t rest until every American who wants a job can find one.”

Apparently, the president is aiming for 0% unemployment. This absurdly unrealistic goal can be attributed to ignorance of economics, demagoguery or delusions of grandeur. Whichever it is, the president’s economic advisors must have cringed.