I was rather content to let the matter lie after devoting a couple of lengthy expositions to it, but the Fed has its own way of confirming every charge. I am writing again about the fact that the assumed monetary agency was quite curious about the dramatic changes in banking and money at one point in the not-so-distant past only [...]
For those inclined to see only the positive side, the current downdrift in at least manufacturing globally still holds no special distinction. Either it is to be dismissed as a trivial concern unconnected to the “real” economy or, more blatantly, it doesn’t matter because it only means more “stimulus.” Thus, the positive side can never lose as every negative account [...]
This is fast becoming the “12% recession”, as economists and media commentary rushes to quell any notion of systemic economic retrenchment. If it isn’t “the dollar” or “overseas demand”, then surely the dramatic (and always “unexpected”) reversal of US manufacturing is but a novelty to be regarded as inconsequential on Yellen’s road to the Promised Land. Reuters author Lucia Mutikani [...]
Spending and wage growth disappointed in September, particularly as incomes continue to register barely any growth. The fact that this stagnation has continued for several years allows commentary such as this: U.S. consumer spending in September recorded its smallest gain in eight months as income barely rose, suggesting some cooling in domestic demand after recent hefty increases. The Commerce [...]
In addition to indications for a gathering slowdown in export power Germany, the UK has followed a similar line of late. That would make sense since both Britain and Germany are essentially the same kind of economy separated slightly in geography and currency. They both make much of their growth from the same marginal space; financial services, exports to the [...]
What should be written about GDP has nothing to do with whether 1.5% is meaningfully different than 3.9%. Everything gets focused upon the quarterly variations and, often intentionally, loses all that is important about the economic context. That 1.5% is weak and ineffectual, but that it continues the string of irregular and unstable approximations is all that truly matters; especially [...]
Part 1 can be found here Long before Bear Stearns, there was Countrywide and a glimpse into the yawning abyss. But there was also Northern Rock, a UK bank, and a series of tremors and earthquakes rumbling across Germany. It was an entirely surreal period, as the once-mighty German system ground to a spectacular halt on, of all things, US [...]
Written Wednesday Oct 28 Credit Suisse has stumbled in its initial restructuring effort. Forced by Swiss regulators to deleverage more quickly, the bank has turned to several unenthusiastic steps in order to comply. The Swiss banking unit will see a partial public flotation not to “unlock value”, as is commonly described, but rather to satisfy systemic banking requirements in the [...]
Written Wednesday Oct 28 There is much less to an FOMC statement than the FOMC minutes, all far less than the actual meeting transcripts. That is why the statement is available immediately, the minutes within a month , but you will wait more than 5 years for the actual discussion. In the case of this “recovery”, that delay worked to [...]
Written Tuesday Oct 27 It bears repeating and re-emphasizing, but had the guts of the actual global financial system been fully appreciated in a timely manner the current state of the global “dollar” would be cause for celebration. It would matter not that the eurodollar is in full and often violent retreat because that is the exact method by which [...]
Stay In Touch