Tuesday August 16. Once again the market indicates it reacted more to political fears than to the fundamentals. See referenced news clip below.

Tuesday August 16. Once again the market indicates it reacted more to political fears than to the fundamentals. See referenced news clip below. This continues to establish the pattern of market behavior which creates momentary buying opportunities following so-called economic disasters that were not, in fact disasters at all, because they did not change market fundamentals. So the question is this, “How did the debt ceiling crisis affect General Motors?” And the answer is, “It didn’t” So why then did it affect me?  Well, it affected me because everything I read said it would be terrible, and then the market did drop a lot. But really all I should be concerned with, if I am investing in General Motors is, “How did the debt ceiling crisis affect General Motors?” Don’t you think? See below for famous historical quotations.

WASHINGTON (Reuters) - U.S. industrial output posted its best gain in seven months in July as the auto sector bounced back from supply disruptions wrought by Japan's devastating earthquake in March.

The surprisingly strong production data, together with a smaller-than-expected decline in home building last month, further eased fears the economy was at risk of contracting.

"I don't think we are headed for a second recession," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania.

Industrial output increased 0.9 percent, the Federal Reserve said on Tuesday, after a 0.4 percent gain in June -- nearly double economists' expectations for a 0.5 percent rise.