Monthly Archive:: June 2009
Earnings season coming
Government Spending
Jun 30, 2009
[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:
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Valance chart
Commodities
Jun 29, 2009
[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]
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FT.com / Europe – Exporters warn of German credit squeeze
Credit, Exports, Financial Times
Jun 29, 2009
[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
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Surging U.S. Savings Rate Reduces Dependence on China
CBs, China, Deficit, Government Spending
Jun 29, 2009
[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
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JPMorgan, Citigroup Expand in ‘Jumbo’ Home Mortgages
Banking, Deficit, Government Spending, Housing
Jun 26, 2009
[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’
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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
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S&P SAYS JAPAN HAS ENOUGH FUNDS TO SERVICE RISING DEBT COSTS
Deficit, Government Spending, Japan
Jun 25, 2009
[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]
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China pushing domestic consumption
CBs, China, Employment, GDP
Jun 25, 2009
[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
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King Says U.K. Recovery May Be ‘Long, Hard Slog’
CBs
Jun 25, 2009
[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,
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India Should Rely on Lower Rates to Stimulate Growth, OECD Says
Deficit, India, Interest Rates
Jun 24, 2009
[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
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