Some Thoughts On The Economy.

This from Direxion Funds "By The Numbers" 02.01.09

ON THE SIDELINES - The S&P 500 was worth $7.2 trillion as of the end of January 2009. At the beginning of 2009, an estimated $8.9 trillion of cash was invested in safety-oriented investments (e.g., money market funds) and not in the US stock market (source: Leeb Capital Management, Denver Post).--My thoughts....This is an incredible amount of dry tender that could at some point boost stocks significantly higher but it will need a reason to be invested. At least it will need a reason to invest for something longer than a trade.

HEALTHY - Annual health care expenditures of every American citizen ($7,026) are more than twice the level of the average British citizen ($3,361). $1 out of every $6 of the US economy is spent on health care (source: Time).---My thoughts.... This is a system that cannot last. Americans simply cannot afford a doubling of their healthcare costs evey 3-4 years.

LONGER THAN MANY - If the USA is still mired in the recession that officially began on 12/31/07, then the current economic downturn began its 14th month yesterday. In the 12 other recessions our country has experienced since 1935 (i.e., the current recession is the 13th since then), only 2 slumps have lasted as long as 14 months (source: National Bureau of Economic Research).---My thoughts: No law that says this recession can't break records or last longer than most gurus think.