Real-Time Economics – Jon Hisenrath: Key Passages From Bernanke’s Testimony Federal Reserve Chairman Ben Bernanke highlights risks to the Fed’s economic outlook in his prepared testimony to Congress Wednesday. Here is a look at key passages in the testimony and what they signal: WHAT HE SAID: “I emphasize that, because our asset purchases depend on… Continue reading Bernanke’s Words Come Early
The Financial Times – US inflation creeps nearer to Federal Reserve target The largest rise in petrol prices in four months accounted for much of the gain in the June index, which measures the change in the average price level of a fixed basket of goods and services. Core prices, which strip out the volatile… Continue reading U.S. Inflation
<Click on chart for larger image> Bloomberg.com – Europe Car Sales Slump as German Sentiment Wanes: Economy European car sales slumped to a two-decade low, German investor confidence unexpectedly dropped and euro-area exports fell for a second month, adding to signs that the region is struggling to emerge from recession. Auto registrations decreased 6.3 percent… Continue reading Crashing European Auto Sales
The Financial Times – Globalisation in a time of transition Trade remains vulnerable to problems such as financial crises and inequality Protection is the dog that did not bark. Despite a huge financial crisis, the trend towards integration of the global economy has continued. This is surely remarkable. So why has this happened? Will it… Continue reading The Global Economy
Business Insider – Proof That We’ve Hit Peak Hilsenrath There’s an obsession in markets with WSJ reporter Jon Hilsenrath, who is frequently viewed as having a direct line to the Federal Reserve (a reputation that may not be justified).Today at 2:40 PM, a new Hilsenrath article hit the web, talking about some of the economic… Continue reading Peak Hilsenrath
Fabius Maximus – The US economy is slowing. Things might get exciting if this continues. The US economy is slowing. Things might get exciting if this continues.The US economy is $16 trillion component of a $72 trillion world. It seldom rolls over quickly, except from an external shock (e.g., the 1973 oil embargo). No such… Continue reading The Slowing Economy
The Wall Street Journal – The Fed’s Credibility Gap A week after the Fed met, the Commerce Department said that gross domestic product had grown by an annualized 1.8% in the first quarter, less than its earlier estimate of 2.4%, largely because consumer spending wasn’t nearly as strong as it had thought. It has lately… Continue reading The Federal Reserve’s Credibility
The Financial Times – Fed’s jobs focus will drive equities higher When US unemployment is falling, equities tend to outperform The reasoning is simple: over the past 40 years, whenever US unemployment has been on a downward trend, global equity returns have tended to outpace bond returns. In case investors were unclear about the policy… Continue reading The Case For Equities Moving Higher
The Wall Street Journal- Bhidé and Phelps: Central Banking Needs Rethinking The Federal Reserve did well to supply liquidity after Lehman Brothers failed in September 2008 and the world was plunged into financial crisis. But since then the Fed’s monetary policy has been increasingly hazardous and bank supervision by the Fed and other regulators dangerously… Continue reading Rethinking The Role Of Central Banks
Business Insider – ‘China’s Madoff’ Was Executed In Secret Hunan province businessman Zeng Chengjie — who emerged from poverty to become a major real estate developer — was executed by the Chinese government for fraud and illegal fundraising last week. According to Zeng’s daughter, local Party members removed their investments from her father’s projects in… Continue reading Do NOT Get In Trouble In China
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Comment Yesterday Jim was on Bloomberg TV Asia talking about QE, earnings and the economy. To view the interview the click on the image above. To view any of our recent interviews click here. <Click on chart for larger image>