According to a shocking U.S. government report, interest on the national debt and mandatory spending on entitlement programs will absorb approximately 92 cents of every dollar of federal revenue by the year 2019.
Approximately one out of every four dollars that the U.S. government borrows goes to pay the interest on the national debt.
According to a recent note from the sage of Dallas based Hayman Capital, highly respected Kyle Bass, a move back to 5% (2006 levels) in short term interest rates will increase annual U.S. interest expense by almost $700 billion annually. This is against current U.S. government tax revenues of $2.228 trillion (CBO FY 2011 forecast).
oil has been going down for one primary reason, it's priced in Usdollars.
FWIW, the lows of the day for the DIA, and the SPY, pretty much matched the lows of last Friday. UUP daily chart shows a higher high, but a lower rsi, ditto the EUO (dbl short the euro), short term bullish for equities, notably gold stocks, some of which yield far more than INTC, ie GFI.
as evident on Monday for the QQQ, late today on the DIA, SPY, QQQ, oversold rallies can be quick and rewarding, but there is now resistance on the upside, SPY 1340, so until that level is taken out with positive technicals, rising rsi.rising macd, rallies should be viewed with skepticism.