Monthly Archive:: October 2009

Restaurant Index Shows Contraction, Less Capital Spending

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gasoline demand vs 2 yrs ago

[Skip to the end] I use comps from two years ago as last year was unusually choppy. No sign of gasoline demand picking up that I can detect. Starting to look like the Saudis decided to give themselves maybe a $10 per barrel price increase, but too soon to tell. GDP up ...Read More

Moody’s Lowers Outlook on Portugal,Greece On Downgrade Review

[Skip to the end] The Euro zone remains at risk of a liquidity crisis for the national govts. This doesn’t help. On Thu, Oct 29, 2009 at 5:37 AM, wrote: 5:02 *MOODY’S CHANGES THE OUTLOOK ON PORTUGAL’S Aa2 RATING TO NEG (From Stable) 5:01 *MOODY’S PLACES GREECE’S RATINGS ON REVIEW FOR POSSIBLE ...Read More

Canada ready to buy $US on weakness

[Skip to the end] From: Mario Seccareccia Date: Sat, Oct 24, 2009 at 10:58 AM Subject: RE: *Canada ready to buy $US on weakness To: Warren Mosler Warren, I was at a conference in Quebec City on the issue of financialisation and I just got back literally during the night because of ...Read More

The harder they come, the harder they fall

Diversification became a substitute for credit analysis. But also, if the deficit gets too small, the economy will implode sufficiently to get the deficit back up through falling tax revenues and rising transfer payments. So the ‘tougher’ the private sector is, the harder the automatic stabilizers will work to bring it down, ...Read More

mtg apps fall

[Skip to the end] This is not a good sign as purchase apps are back down to very low levels: The mortgage applications index fell 12.3 percent on a seasonally adjusted basis to 562.3, the Mortgage Bankers Association said. Purchase applications dropped 5.2 percent to 254.9 and refinancing demand sank 16.2 percent ...Read More

Conservatives Say Low Rates Are U.K.’s Best Route Out of Slump

[Skip to the end] Earlier this year I thought the UK was on track with their understanding of their monetary system. Recent headlines don’t look so promising: Conservatives Say Low Rates Are U.K.’s Best Route Out of Slump By Robert Hutton and Jennifer Joan Lee Oct. 28 (Bloomberg) — Philip Hammond, a ...Read More

Carney Says Intervention Needs Policy to Back It Up to Work

[Skip to the end] CIBC Says Canada Should Consider ‘Bounded Float’ of Currency This would help support exports. (But my first choice would instead be funding an $8/hr job for anyone willing and able to work and a tax cut to sustain domestic demand and optimize real terms of trade.) Carney Says ...Read More

Roubini Says Carry Trades Fueling ‘Huge’ Asset Bubble

[Skip to the end] Again, maybe right but for the wrong reason. My take is the gold and commodity bubble is due to people (Roubini included) believing Fed policy is inherently inflationary – printing money and all that – when it’s not. When those funds are done being committed, it can all ...Read More

Carry trade

[Skip to the end] The article completely misses the point. There is no ‘cash pouring into’ anything. Nor is there a constraint on lending/deposits in any non convertible currency. It is not a matter of taking funds from one currency and giving them to another. There is no such thing. Yes, the ...Read More