It's just a fact that this pent-up demand was far bigger than any of the prognosticators figured because it hadn't snapped back yet from the Great Recession. That's because, we are now learning, it snaps back only with job growth and we are getting that growth in the U.S. economy.
What's helping it, by the way, is the recognition that if you have the ability to get to Texas or North Dakota and some parts of Colorado and Wyoming, jobs await you. That was quite evident from an interview Home Depot (HD) CEO Frank Blake gave to CNBC yesterday where he said that they just opened a new Home Depot in Williston, N.D. because the Bakken formation is creating so many new jobs and so much construction. These jobs are coming fast and furiously now as the Bakken, the Niobrara, the Delaware Basin in the Permian and Eagle Ford are showing to have much more oil than thought as recently as two years ago.
So, we are discovering day by day that the demand is exceeding forecasts simply because the people getting jobs look to have been buying nothing and doing nothing for the five years intervening since the recession.
That's why people keep getting the numbers wrong. They stopped counting these people. They are back. They are buying. And they are keeping the domestic economy humming in a nation where 10-year rates have almost doubled in a few months. It was really never about the rate of credit with these people anyway. It was about getting credit at all. When they left the workforce, rates were much higher anyway. This might turn out to be the theme for the last part of the year.Bulls should hope people keep misjudging it. That's how the domestic stocks can go higher. That's how Ford (F) and General Motors (GM) break out to unheard-of levels and it is how the regional banks regain strength as demand comes back in all sorts of places that we had just plain forgotten about. Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long COST, JOY and F.
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