You’ll recall that when we left off last week, Ben Bernanke assured the world that while the recovery was not exactly what he had hoped for, he nevertheless had the situation in hand. He said he had the tools necessary to fix the problem and would do whatever was required.
September 1st, 2010 | Bill Bonner | 2 comments | ContinuedAll Posts Tagged With: "recovery"
The Mistake-Correction Cycle of Real World Economics
In the real world, the economy is always making mistakes and always correcting them. Making mistakes and correcting them. And markets are always discovering what things are worth. They figure out what one thing is worth, conditions change and they change their minds.
August 30th, 2010 | Bill Bonner | 1 comment | Continued
The Economic Recovery Flop
After 18 months and $2.5 trillion in counter-cyclical budget deficits, people have begun to realize that the ‘recovery’ is a flop. What they haven’t realized – yet – is why. But, it’s summer…no one is doing too much thinking now. Obama went for a vacation in Maine. Hillary married her daughter. Economists are fishing.
August 10th, 2010 | Bill Bonner | 1 comment | Continued
Incredible Threat
Last week, Mr. James Bullard was being both cagey and clairvoyant. The president of the St. Louis Federal Reserve Bank noticed what everyone else has seen for months; the US economic recovery is a flop. GDP growth was last measured pottering along at a 2.4% rate in the second quarter, less than half the speed of the last quarter of ’09.
August 9th, 2010 | Bill Bonner | 3 comments | Continued
US Treasury Secretary a True Believer in Economic Recovery
Consumer spending, pending home sales and factory orders were all weaker than projected in June, showing the US recovery lost momentum heading into the second half of the year as employment stagnates. Elsewhere in the news it is reported that more consumers than ever before are going bankrupt…
August 6th, 2010 | Bill Bonner | 0 comments | Continued
V-Shaped Recovery, Where Art Thou?
To make matters even more unsettling, the world’s governments have pledged to reduce their countercyclical spending. They won’t get an argument from us on that score. They are doing the right thing. But if they follow through, it will result in the private sector and the public sector de-leveraging at the same time. This is highly deflationary.
July 7th, 2010 | Bill Bonner | 0 comments | Continued
Independent from What?
Obviously, that kind of boom can’t go on forever. And when it came to an end in 2007 it changed the financial picture for governments as well as households and businesses. Tax revenues went down. Expenses went up. And so did the bailouts and boondoggles that they call ‘stimulus’ spending.
July 7th, 2010 | Bill Bonner | 0 comments | Continued
The End of the Nominal Recovery
In other words, one year after the official end of the recession, the economy shows no signs of booming. Emergency Keynesian policy measures taken to keep the debt crisis from devolving into a 1930s deflationary spiral show signs of losing effectiveness, and the self reinforcing economic growth story is giving way to talk of a “double dip” recession, as trouble in Europe
July 2nd, 2010 | Eric Janszen | 11 comments | Continued
Getting Better?
It was no big deal except that the there’s supposed to be a recovery. And May was important. Because the major stimulus efforts are coming to an end. Economists wanted to see how the economy would hold up without the government holding it up.
June 15th, 2010 | Bill Bonner | 3 comments | Continued
“We are now near the end of the declining phase of the depression.”
But nobody welcomed the Great Correction. Except us. The others all pretended that it was a recession…even a Great Recession. They treated it like an invasion of cockroaches or a stopped up toilet. They thought they could get rid of it.
June 11th, 2010 | Bill Bonner | 4 comments | Continued
The Housing Non-Recovery
But we announced that the data led us to believe the contrary and we delivered our analysis in a presentation entitled, “Why We’re Still in the Early Innings of the Bursting Housing and Credit Bubbles.” We concluded that things were terrible and that there was no sign of a bottom. Obviously, that forecast was on target.
June 10th, 2010 | Whitney Tilson | 6 comments | Continued
All Quiet on the Fronts
One thing to keep your eye on is the G-20 finance ministers in Busan, South Korea this weekend. They will get together and agree to do nothing urgent. The one thing they will definitely NOT be doing is raising interest rates. They are too creeped out about a sovereign debt crisis in Europe leading to another liquidity crisis, according to Bloomberg.
June 4th, 2010 | Dan Denning | 11 comments | Continued
China: Looking for past parallels and bringing forward resource demand
But China’s position is similar. It is the emerging power that other nations see as having the ability to bring the world out of its economic malaise. And like the US last century, it is inflating (expanding money supply and credit) in order to do so. But China is inflating for its own benefit, and certainly not to help the US.
May 13th, 2010 | Greg Canavan | 6 comments | Continued
ETFs as a Resource Investment
In America, you’ll find two new exchange traded funds (ETF) linked to commodities. Global X Funds has launched an ETF for tracking sliver miners (NYSE:SIL) and an ETF for tracking global copper miners (NYSE:COPX). From our very cursory, the main rationale for both funds is higher demand for industrial metals, which more or less implies a recovery in the global economy.
April 21st, 2010 | Dan Denning | 0 comments | Continued
Come to Buenos Aires: No Cares About GDP, Debt, Monetary Policy and Good Governance
Argentina is probably the best place in the world from which to contemplate the world’s financial future. Huge errors now being made by the US and most other governments…
April 13th, 2010 | Bill Bonner | 0 comments | Continued
