China Confirms Australia and the Global Chain
The HSBC/Markit PMI for China fell back below 50 for the first time in seven months. This rebound has been relatively minor, more like an absence of contraction than a surge in manufacturing activity. Nearly every subindex, including all the major components, also fell under 50. These results correlate with the Australian collapse I noted a .. read more
No Bottom In Europe, A New King of the PIIGS
The bounce for Germany seems to be over, and, much like US manufacturing, there appears the mini cycle. Markit PMI for Germany: Both the ZEW Indicator of Economic Sentiment and IFO Business Climate Surveys disappointed expectations, as sentiment in Germany looks to have passed an inflection and rolled over again in sympathy with manufacturing. For .. read more
A Reversal Of (Mis)Fortunes
In the bank meltdown of 2011, the financial sector was in obvious and blatant distress much to the obvious and blatant consternation of every central banker in the modern economic “community”. By September 2011, the US Federal Reserve re-opened (a second time) dollar swaps with the ECB to pass US $ funding on to local .. read more
Tangible Benefits Are Conspicuously Absent
There should be much closer scrutiny on attaining success through monetary means. As with the Federal Reserve in the United States, the ECB seems to be judged solely on the asset prices of a select group of asset classes. But somewhere, someone should be monitoring the actual efficacy of all of these interventions. I think .. read more
Europe Still Ugly, But Ugliness Is Not Just For PIIGS Anymore
Total European roundup from this morning – marginally less bad in the PIIGS, but deterioration into contraction in Germany and especially France. SPAIN, Services PMI 41.2, up from 40.2 “This Further sharp reductions in activity and new orders were recorded in the Spanish service sector during October as the economic crisis in the country persisted. .. read more
Weekly Economic and Market Review
I spend a lot of time reading the economic tea leaves. Given my well known distrust of politicians and government, it is a bit of ironic that I spend so much time poring over the details of government produced reports but there really is little choice. I also look at privately produced reports such as .. read more
Weekly Economic and Market Review
Phew! Thank goodness that’s resolved. The President’s fiscal commission released its recommendations for solving the budget deficit and the plan was promptly embraced by a majority of the panel that crafted it. The plan will now be enacted forthwith, eliminating all manner of tax breaks, while simultaneously lowering marginal tax rates, cutting government spending across .. read more
