Events of the last two weeks and particularly this weekend’s government takeover of Fannie Mae and Freddie Mac need to be analyzed and their impact assessed.

First, on August 28th the government reported its second revision to second quarter GDP raising growth from 1.9% in its initial report to 3.3%. With its usual euphoria with headline reports, the stock market rallied strongly with the Dow Jones Industrial Average increasing by over 200 points as fears of a U.S. economic recession were diminished by the upward economic growth adjustment. The incremental second quarter adjustment was due primarily to a surge in exports aided by the continued currency advantage of the U.S. Dollar, the rebate checks mailed to taxpayers in the second quarter which found their way ... Log in to view full article.