Did Eonia Just End the ECB’s Recovery Fiction?

What should most troubling to investors of all stripes and locales is that what is going on in Europe is almost exactly the same as what is taking place in Japan. Despite nearly all outward appearances, Japan and Europe have far more in common than differences, at least where it counts. The Japanese have finally .. read more

Our Future On Full Display Right Now

The Bank of Japan has already been pressured by events to reduce its economic expectations for 2014. At the end of 2013 there was enough cautious optimism that Japanese officials went ahead with their dubious proposal to try to appear fiscally responsible. The tax increase was expected to create a mild contraction in GDP before .. read more

GDP Pieces

Following up on my earlier observations about a reduced trajectory, getting away from the thick trees of quarterly statistic movements and revision for the forest of patterns and paths, viewing the subcomponents of GDP as standalone accounts rather than contributors highlights exactly that problem. Whether you view the economy through real final sales (both of .. read more

GDP Revisions Actually Show A Much Smaller Economy Further From Health

Statistics are notorious for being worse than liars, according to cliché, but under many circumstances there is more than an element of truth to that. The latest revisions to the July revisions are not quite the liars’ paradox (everything I say is a lie; that first statement is true) but there is something amiss that .. read more

Durable Goods Are ‘Better’ Only in Narrow Focus

Factoring the record pace of Boeing’s distortions on durable goods, the series has picked up in the past two months after major and large upward revisions to June’s estimates. The increase in growth encompasses nearly all of the subsegments, as new orders and shipments for both durable goods (ex transportation) and nondefense capital goods (ex .. read more

Stagnation Confirmation

Janet Yellen has essentially confirmed QE’s demise; good riddance. Unfortunately, I don’t think that is the final end of QE in America, just as it hasn’t been the end time after time in Japan (and perhaps now Europe treading down the same ill-received road). What’s interesting is really watching these central bankers talk themselves in .. read more

It’s Not All Oil and Gas

In addition to this morning’s “noisy” and suddenly more tame CPI report, there is a broad-based decline in commodity prices that is more than a little bit outside of “usual” volatility. It should be noted at the start that commodity prices are not always direct reflections of economic activity or expectations for future activity, as .. read more

The Art & Science Of Investing

In last week’s update I mentioned that within our own shop we often have disagreements about the economy and markets. Based on my email flow, that seems to have surprised and possibly confused some people. So, I want to spend some time this week talking about investing more generally rather than concentrating on the week .. read more