MidnightWatcher – Prophecy in Motion

By: Margo D. Beller – “Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.

‘What we’ve got right now is almost near panic going on with money managers and people who are responsible for money,’ he said. ‘They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.

‘We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake.’

Stocks extended losses after the manufacturing fell below expectations in May and the private sector added only 38,000 jobs during the month.

‘Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything,’ Yastrow said. ‘We’re on the verge of a great, great depression. The [Federal Reserve] knows it.'” Read more.

Horror for US Economy as Data Falls off Cliff – “The last month has been a horror show for the U.S. economy, with economic data falling off a cliff, according to Mike Riddell, a fund manager at M&G Investments in London. ‘It seems that almost every bit of data about the health of the US economy has disappointed expectations recently,’ said Riddell, in a note sent to CNBC on Wednesday.” Read more.