This morning, the currencies look pretty much like they did yesterday when I left the office… There’s still the Sword of Damocles hanging over the euro (EUR), in the form of Greek negotiations to obtain help from private lenders. This has dragged on now for over two weeks, and I’ve given up on it happening… You only have to disappoint me twice before I get the message!
[Read more...]Thomas Friedman and the End of “Average”
February 2, 2012 By Leave a Comment
We got a chuckle out of Thomas Friedman. Maybe he would be good as a brick mason. Or maybe a baker. Shame he got caught up in journalism. He has no talent for it.
In a recent column he tells us that “Average is over.” Typically, it makes no sense. What Friedman seems to mean is that an average person can’t expect to do very well in today’s America. He says average guys are being replaced by robots and Chinese people.
[Read more...]Creating More Debt to Solve the Crisis
February 1, 2012 By Leave a Comment
Readers who expect an early end to this Great Correction are going to be disappointed. There is no sign of it reaching its conclusion anytime soon. Just the contrary…there’s no end in sight.
The Great Correction seems to be going along just as you’d expect. Or, just as we’d expect.
[Read more...]Big Ben Discusses Another Round of Quantitative Easing
January 26, 2012 By Leave a Comment
Good day… And a Tub Thumpin’ Thursday to you! I wonder what I’ll talk about today…. Hmmmm… Could it be…. The Fed meeting? Oh, you are so smart! In case you missed this yesterday, because I’m sure the major media outlets couldn’t muster up enough intestinal fortitude to do it, but the Fed threw a cat among the pigeons yesterday… There are a lot of things I’m thinking about, this morning, so, this should be entertaining… For me at least!
[Read more...]Confusing Gradual Bankruptcy with Economic Recovery
January 25, 2012 By Leave a Comment
We have a wintry landscape here in Baltimore…or what is left of one. But forget the weather, happy days are here again.
At least, that is what you might think from reading the newspapers. Unemployment is going down. Consumer debt is going up. Even the housing market is showing signs of improvement.
[Read more...]China to Show More Manufacturing Weakness?
January 20, 2012 By Leave a Comment
What looked like a workable situation for Greece and private creditors has taken a turn that has the euro (EUR) vulnerable again this morning. It’s not as if the situation is unworkable. It’s just that they are struggling to come to an agreement, and since it’s not as smooth as Jiffy, then the Chicken Littles come out of the crowds… But then, quite frankly, I have been surprised by the strength the euro has displayed this week. The euro has always shown resiliency, but as I’ve said a couple of times now this year… I wouldn’t be surprised to see it fall to 1.18 and then rebound to 1.40… But we have 49 more weeks to go in 2012. There’s a lot of give and take here, so buckle up, yes, that’s right: Click it or ticket…
[Read more...]Has Capitalism Failed Us?
January 13, 2012 By Leave a Comment
“Americans think we are stupid,” said a European diplomat at a dinner party in Washington. ”But we’re not stupid. We’re just working out the problems involved in forming what you might call ‘a more perfect union.’”
“Well, you can unify all you want…it won’t make your debts go away,” we replied. We always try to be a cheery presence at dinner parties…especially in Washington.
[Read more...]Euro Reverses Slide in Short Squeeze
January 9, 2012 By Leave a Comment
The Jobs Jamboree on Friday proved to be a real boost for the economy and the dollar, which rallied on a “strong jobs number” for the first time in a month of Sundays. I highlight “strong jobs number” because, this is what this has come to… 200,000 jobs were created, so says the Bureau of Labor Statistics (BLS), in December, which is the strongest number of jobs created in another month of Sundays… The jobs reports have been so weak for so long now, that the media, and markets are all lathered up and calling this a “strong jobs number”… It’s stronger than previous ones, yes…
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Jobs Data Sends Currencies and Gold Lower
Good day… And a Marvelous Monday to you! Congrats to the fans of the Big Blue, NY Giants, who are the Super Bowl Champions, after a very entertaining game. It’s very foggy out this morning here in St. Louis, reminds me of the time my beautiful bride and yours truly were driving home from Des Moines to St. Louis and a very dense fog was everywhere… Not wanting to stop, I cracked the car door open and kept an eye on the white line, which would keep me on the road… Thinking back now, that probably wasn’t a very safe thing to do, eh?
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