The New York Times – Floyd Norris: The Economic Sweet Spot of Presidential Terms Still, in the years from 1946 through 2009, 62 percent of the American economy’s growth came during the final two years of presidential terms, compared with 38 percent in the first two years. A third of the growth came in the… Continue reading The Presidential Cycle
The New York Times – As China Rolls Ahead, Fear Follows For nearly two years, China’s turbocharged economy has raced ahead with the aid of a huge government stimulus program and aggressive lending by state-run banks. But a growing number of economists now worry that China — the world’s fastest growing economy and a pillar… Continue reading China
Bloomberg.com – Ron Paul Doubts Bernanke Can Curb Inflation `in 15 Minutes’ After Stimulus Representative Ron Paul, a Texas Republican who next month will take control of the House subcommittee that oversees the Federal Reserve, said he’s concerned the central bank won’t be able to prevent an outbreak of inflation. Fed Chairman Ben S. Bernanke… Continue reading Ron Paul
The New York Times – Risky Borrowers Find Credit Available Again, at a Price Credit card offers are surging again after a three-year slowdown, as banks seek to revive a business that brought them huge profits before the financial crisis wrecked the credit scores of so many Americans. The rise is striking because it includes… Continue reading Is Credit Flowing Again?
The Wall Street Journal – Companies Cling to Cash Coffers Swell to 51-year high as Cautious Firms Put Off Investing in Growth Rather than pouring their money into building plants or hiring workers, nonfinancial companies in the U.S. were sitting on $1.93 trillion in cash and other liquid assets at the end of September, up… Continue reading How Much Cash Is On The Sidelines?
The New York Times – Dire Headlines Unsettle Muni Bond Investors Armageddon makes for a sexy story. Volatility in the $2.8 trillion United States municipal bond market is real, but the scary tale being spun out of budget-busting states like California involves a lot of literary license. The rockiness of the market lately is shown… Continue reading Is Bad News Still Hurting Munis?
The Wall Street Journal – Markets Defy Fed’s Bond-Buying Push The Federal Reserve’s decision to spur the economy with a $600 billion round of bond buying was among the most controversial in its history. Fed officials quarreled over whether to proceed. At worst, some members argued, such a move risked whipping inflation to dangerous levels.… Continue reading Is QE2 Failing To Help?
<Click on chart for larger image> The Economist – Buttonwood: Getting real The savings glut was really an investment dearth Low real rates have propped up asset markets this year as investors have been forced into riskier assets like equities, corporate bonds and even commodities in search of higher returns. But a new report* from… Continue reading Real Rates
<Click on chart for larger image> Bloomberg.com – Senate to Consider Tax-Cut Bill That Would Add $857 Billion to U.S. Debt The legislation would add $857 billion to the federal debt over 10 years, government analysts said. … The congressional Joint Committee on Taxation, which estimates the revenue effects of tax legislation, said the provisions… Continue reading The Deficit Gets Larger
<Click on graphic for larger image> The Economist – Cover: The world economy: Three-way split America, the euro zone and the emerging world are heading in different directions THIS year has turned out to be a surprisingly good one for the world economy. Global output has probably risen by close to 5%, well above its… Continue reading How To Divide Up The World
Comment Jim Bianco was a guest on Ron Insana’s radio show yesterday discussing the markets and economy. To listen click here and move the slider to the last 10 minutes.