201011.28
7
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Weekly Economic and Market Review

See if you can guess what economy produced the following year over year changes: GDP growth rate +56% Personal Income +4.35% Savings Rate +23.91% Fixed Investment +5.37% Steel Output +10.32% Business Sales +8.86% Durable Goods Sales +12.2% Factory Shipments +7.21% Retail Store Sales +7.31% Factory Orders +17.18% Exports +12.58% You wouldn’t know it from all…

201011.27
1
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Weekly Chart Review

The Fibonacci retracements show where to expect resistance for the US dollar index which has broken the short term downtrend.

201011.21
0
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Weekly Economic and Market Review

GM sold shares to the public last week some of which were previously owned by….the public. Anyone lucky or well connected enough to be allocated shares in the IPO was able to book a near 10% profit almost immediately while the less fortunate previous owners – that would be you and me – took a…

201011.15
0
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Krugman Responds to Bernanke Letter

Paul Krugman responds to the Ben Bernanke letter in the previous post with “Liquidationists of the World, Unite!”: OK, so now it’s official: conservatives aren’t just against any effort to boost demand with fiscal policy, they don’t want the Fed doing anything positive, either. This open letter to Ben Bernanke is a remarkable document, not…

201011.15
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Open Letter to Ben Bernanke

From the WSJ Real Time Economics Blog: The following is the text of an open letter to Federal Reserve Chairman Ben Bernanke signed by several economists, along with investors and political strategists, most of them close to Republicans: We believe the Federal Reserve’s large-scale asset purchase plan (so-called “quantitative easing”) should be reconsidered and discontinued….

201011.15
0
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Maybe He’s Just Wrong

Barbara Crossette, writing at The Nation: In pushing his domestic agenda, President Obama wasted valuable time chasing the mirage of a rational bipartisan consensus, and the price he paid in the mid-term elections was disastrous for the Democrats. Yet only a few days later, he seemed to be on the same path on his long…

201011.15
0
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How to Make the Dollar Sound Again

James Grant on the Fed’s latest monetary alchemy, known as QE II: The intended consequences of this intervention include lower interest rates, higher stock prices, a perkier Consumer Price Index and more hiring. The unintended consequences remain to be seen. A partial list of unwanted possibilities includes an overvalued stock market (followed by a crash),…