The rising market is driving the majority of the economic data supporting the “green shoots” crowd. The Index of Leading Economic Indicators, which has been pointing up for a few months, is heavily influenced by the stock market.
August 13th, 2009 | Dan Amoss | 0 comments | ContinuedAll Posts Tagged With: "wall street"
Investors Are Betting On Recovery
Make no mistake though. No one knows how long this rally will last – certainly no one here at The Daily Reckoning vacation headquarters. It will continue until it runs out of gas. That could be tomorrow. It could be months from now.
August 6th, 2009 | Bill Bonner | 2 comments | Continued
Investors in China Have Learned Nothing From the Crash of ’07-’08
With no barriers to entry, profit margins are always squeezed by competition. And growth is limited too – other builders are always starting up. If the investor paid 40 times earnings, he can only get 2.5% on his money…
July 31st, 2009 | Bill Bonner | 0 comments | Continued
Normally Small Businesses Lead the Economy Out of Recession
Part of the phenomenon can be explained merely by the severity of the downturn. If this were a recession it would be a bad one – worse than any since the Great Depression. Consumers have rediscovered thrift. Households are cutting back.
July 28th, 2009 | Bill Bonner | 0 comments | Continued
What’s Good for Goldman is Generally Bad for the Country
Goldman makes money by separating investors from their money. Nothing wrong with that; someone has to do it. But the big banks are most profitable when speculation is rampant and debt is growing. That is, when people are going further and further into debt…
July 27th, 2009 | Bill Bonner | 1 comment | Continued
Is There Any Wonder Americans’ Hate Bankers?
“The watchdog overseeing the federal government financial bailout says the government’s maximum exposure to financial institutions since 2007 could total nearly $24 trillion, or about $80,000 for every American.
July 22nd, 2009 | Bill Bonner | 0 comments | Continued
Feds Have Economy on Life Support
There was a crash and credit crunch at the end of last year. Then, the feds panicked. They fought back with monetary and fiscal stimulus. Rates were cut to nearly zero. The Fed flooded the system with cash and easy credit – buying up Wall Street’s bad investments…propping up bad banks…and guaranteeing trillions worth of bad debt.
July 16th, 2009 | Bill Bonner | 0 comments | Continued
California and its Ailing Economy
And what about California? This week’s Economist magazine gives us a new measure for California’ budget deficit — $26 billion, up from the $24 billion last reported in this space. A widely published photo shows Arnold Schwarzenegger smoking a cigar…
July 14th, 2009 | Bill Bonner | 0 comments | Continued
World Economy Faces Hyperinflation or Deflation?
What is more likely is that over the coming months, we will get another deflationary scare. Any sell-off in the markets later this year will be met by an even larger stimulus from the policymakers and this will ultimately result in high inflation.
July 9th, 2009 | Puru Saxena | 4 comments | Continued
Economy Not Going Back to Normal Any Time Soon
Economists are still talking about an “exit strategy.” But in view of what is actually going on in the economy, they’ll probably want to stay on this highway a lot longer. This is the long road to ruin, of course.
July 9th, 2009 | Bill Bonner | 3 comments | Continued
RIP Robert S. McNamara and California’s Holes in its Budget
Robert McNamara must have been in a hurry too. He never had time to wonder why he was sending 500,000 American boys to fight a war when Lyndon Johnson was “publicly promising in campaign speeches not to ‘go North,’ not to send American boys to fight wars Asian boys ought to fight for themselves,”…
July 8th, 2009 | Bill Bonner | 1 comment | Continued
Fed Announced it Would Buy up to $300 Billion in Treasury Bonds
Stock action on Wall Street was mostly directionless. Stocks have opened lower here in Australia. But all the juicy action is in the bond market, where the Fed is getting its hands dirty again. You wouldn’t think the Fed would have to come in and support bond prices with investors wringing their hands about global growth. But the numbers tell another story.
July 7th, 2009 | Dan Denning | 4 comments | Continued
Investors Teased and Tickled by Waves of Good News
And now comes the big American holiday – July 4th. Investors pack their suntan lotions and head off to the beach for Independence Day. With Jaws in a cage, they had judged it safe to go into the water. But then came Thursday’s news.
July 6th, 2009 | Bill Bonner | 0 comments | Continued
In 1930…as in 2009…the Average Fellow Thought the Crisis had Passed
“I see the publishers association has chosen a ’20s theme,” began the emcee. “What is wrong with you people? Don’t you know what came after the ’20s? The ’30s!”
It doesn’t seem like the ’30s…yet. Ask the man on the street and he will tell you what he’s heard on TV: the worst of the crisis is over.
Subprime Meltdown Has About Run its Course
“But not to worry,” borrowers were told. “Betting on ever-rising home prices is the safest wager in the whole wide world. If you have problems with cash flow when the ARM resets, your house will be worth a lot more, so you can simply sell it and walk away with a nice chunk of change in your pocket.”
June 4th, 2009 | Doug Hornig | 8 comments | Continued
