Monthly Archive:: June 2009

Earnings season coming

[Skip to the end] I am thinking earnings season should be pretty good this quarter. Fiscal policy has been more than supportive since year end, fiscal consolidation is currently still all talk. Negative shock risks are still there, however, California, eurozone banks and/or governments, nukes, etc. Not sure on timing. World Outlook: ...Read More

Valance chart

[Skip to the end] Gasoline demand sort of flat year over year. And GDP growth still negative, though less so now. Doesn’t look like there was an serious ‘demand destruction?’ [top] ...Read More

FT.com / Europe – Exporters warn of German credit squeeze

[Skip to the end] Don’t think markets are ready for this: Exporters warn of German credit squeeze by Ralph Atkins June 26th (Bloomberg) — Germany’s powerful export industry is warning of a credit squeeze in Europe’s largest economy even after the European Central Bank’s injection this week of one-year liquidity into the ...Read More

Surging U.S. Savings Rate Reduces Dependence on China

[Skip to the end] This gets more ridiculous by the hour. The dependence on China already was zero. And, as in my previous post, the high savings rate of the non government sector comes dollar for dollar from the deficit and is not necessarily indicative of low spending. If it were, that ...Read More

JPMorgan, Citigroup Expand in ‘Jumbo’ Home Mortgages

[Skip to the end] Lending follows the markets. As the economy improves banks and other lenders figure it out and jump in. Also, today’s news on personal income is very bullish as well. It shows fiscal policy ‘works’ as it did for q2 last year. The concern is that the ‘savings rate’ ...Read More

U.S. Federal Reserve Extends Swap Line with Brazil Central Bank

[Skip to the end] Wonder if they’ve used it? In my humble opinion lending them $30 billion unsecured is a high risk proposition. U.S. Federal Reserve Extends Swap Line With Brazil Central Bank June 25 (Bloomberg) — Brazil’s central bank said today it has extended an agreement to access up to $30 ...Read More

S&P SAYS JAPAN HAS ENOUGH FUNDS TO SERVICE RISING DEBT COSTS

[Skip to the end] Yes, infinite, in fact. Put that into your debt to income calculations… S&P SAYS JAPAN HAS ENOUGH FUNDS TO SERVICE RISING DEBT COSTS [top] ...Read More

China pushing domestic consumption

[Skip to the end] Looks like they are moving towards higher levels of domestic consumption to sustain output and employment. (must be reading my blog…) China’s Central Bank Pledges to Keep Money Flowing China to Start Trial Rural Pension System to Boost Consumption China’s Central Bank Pledges to Keep Money Flowing June ...Read More

King Says U.K. Recovery May Be ‘Long, Hard Slog’

[Skip to the end] So how about recommending a suspension VAT for a bit??? King Says U.K. Recovery May Be ‘Long, Hard Slog’ by Robert Schmidt June 24 (Bloomberg) — “There has to be a risk that it will be a long, hard slog” because of the problems in the banking system, ...Read More

India Should Rely on Lower Rates to Stimulate Growth, OECD Says

[Skip to the end] India Should Rely on Lower Rates to Stimulate Growth, OECD Says by Kartik Goyal June 24 (Bloomberg) — India should cut interest rates rather than boost government spending if further measures are needed to stimulate growth, the Organization for Economic Cooperation and Development said. They need to read ...Read More