On the surface of it, the idea is absurd. What does Obama know about airplanes? Who would want to fly in an airplane with Obama in the pilot seat?
November 16th, 2009 | Bill Bonner | 0 comments | ContinuedAll Posts Tagged With: "employment"
Your Average Australian Super Fund
Is it down 0.8% for the year (since January) or in the last twelve months? Or is the average super fund down 0.8% from its all-time high? The average super fund fell 21% from its heights to its lows during the GFC. But the Aussie market has rallied 55% this year.
So does this mean super has done well? Average? Above average?
November 9th, 2009 | Dan Denning | 14 comments | Continued
More Money in Cash Right Now Than Equity in U.S. Companies
Now, there is a very good reason investors are reducing their allocation to stocks. As we’ve said before, we think the equity premium – what people are willing to pay for stocks – is regressing to the mean. It was so high for so long because corporate cash flows in the second half of the last century benefitted so much from low interest rates and globalisation.
November 6th, 2009 | Dan Denning | 15 comments | Continued
The Interest Only Mortgage Option
How much more will these people have to pay? Between 5 and 10 times what they’re paying now. Almost all these homeowners are underwater. They bought at the bubbliest period.
September 22nd, 2009 | Bill Bonner | 1 comment | Continued
Financial Markets Have Clearly Rallied
If it’s true that markets lead economies, markets are telling us that things are going to get much better. The FTSE index of emerging markets is up 99% from its March lows. The S&P 500 is up nearly 60%. And gold itself is up 25%, with much of that move coming in the last few weeks.
September 21st, 2009 | Dan Denning | 10 comments | Continued
A Deflation in Unit Labor Costs
Since employment is a lagging indicator of economic activity, we learned over the years to dig deeper than the headline figure to get a read on where labor market conditions may be going.
September 10th, 2009 | Rob Parenteau | 0 comments | Continued
China, the Miracle Economy
There are some other ways of keeping score that tend to tilt the game in China’s favor – at least, on paper. When you add up all the scores – it shows China a big winner. But by the end of the day, it isn’t at all clear that China’s economy is growing at such a breakneck speed.
August 13th, 2009 | Bill Bonner | 5 comments | Continued
Household Debt Represents Spending Taken From the Future
But you can’t take an infinite amount from future earnings. You reach a point when the future can’t handle it. As more and more future earnings are absorbed by past consumption, pretty soon there’s not enough left to live on. At some point, so much of earnings are devoted to paying the interest…
August 11th, 2009 | Bill Bonner | 3 comments | Continued
If Americans Do Not Return to Work, There Is No Recovery
We have rallied based on one of the largest and most concerted propaganda campaigns ever waged, supported by government stimulus. But no government can stimulate forever…
August 7th, 2009 | Bill Jenkins | 0 comments | Continued
Fed’s Projections Show U.S. Economy Will Grow Quickly in 2010
The only negative note in the Fed’s forecast is that it reckons U.S. unemployment will keep growing to over 10%. That, presumably, is a drag on the economy. But if credit conditions improve, maybe all the people who’ve lost jobs because the U.S. economy is not producing and not competitive can, you know, get a credit card and live off of that
July 17th, 2009 | Dan Denning | 4 comments | Continued