What a horrible economy...

Well, despite the best efforts of the mainstream media and pessimists everywhere, the economy blistered ahead at a 3.3% growth rate in GDP. Thank goodness the best of worst intentions aren't directly impacting the economy. For those of you unconvinced things are really that good, consider that in the 2nd quarter, the United States added the equivalent of Sweden, the 18th largest economy, and on an annual pace is adding an Italy to the economy every year. Italy is the seventh largest economy in the world. It's amazing. But don't expect to hear anything about this in the media. Instead the focus will be on rising unemployment (which is still below the historical low point for economic cycles) and how hard it is to make ends meet with record gas prices. While the latter may be very true, it remains as important to stop and note how very impressive a 3.3% growth rate is.

The number on the FDIC's bank watch list has risen to 117. Historically, 13% of banks on the watch list fail. For those of you with bank stocks, I would continue to keep a keen eye on the news for any information about your holdings. Bank stocks are certainly attractive right now, trading at very low multiples. Even banks with relatively low exposure have been pummeled along with the rest of the industry. That being the case, I still wouldn't advise the faint of heart to consider investing in individual bank equities. Unless you're willing to take a big gamble, a safer option would be an ETF or mutual fund that invests in the financial industry. Right now, the industry is in a rut and trading cheap, but it will eventually rebound.

The democrat convention rolled along this week. Up to today, it had been more about the Clinton's than Obama, but that changes tonight when he speaks from the Parthenon, er Invesco Field. There has been relatively little talk about fiscal policy thus far; maybe tonight's speech will provide some insight on how an Obama administration would affect your portfolio. Of note, the Annenberg papers at the University of Illinois at Chicago were released for public viewing. In them, it showed Obama was President of the organization and pushed to reform Chicago's public school into socialist activism "re-education" camps. All the while, Bill Ayer's remained intimately involved as a senior advisor to the organization. The same Bill Ayer's who's an unrepentent terrorist. Just thought I'd drop that in...

I'm headed to the coast for the holiday weekend. There I'll be enjoying margaritas and sitting on a beach all the while attached to the internet thanks to my handy satellite internet card. Ahh, the wonders of technology. The following weekend I'm headed to the Dallas Trader's Convention. Should be a good time.

Hope everyone has a FANTASTIC Labor Day weekend. Watch out for Gustav; he arrives next week! Until then...