Monthly Archive:: May 2010

CH News | Euro Swings Won’t Stop China Reserves Shift, Yu Says

Euro Swings Won’t Stop China Reserves Shift, Yu Says Right, they want to stay ‘competitive’ in the euro zone China Property Stocks to Rebound End-Year, Xia Says China’s Inflation Target of 3% This year ‘Difficult’ to Meet Even with the yen rising with the dollar. Not a good sign. Inflation per se ...Read More

just when you thought it couldn’t get any more inane

Getting worse by the minute. >    >   (email exchange) >    >   On Thu, May 27, 2010 at 7:51 PM, wrote: >    >   Does anyone know of some way to talk to her? >   This is embarrassing. >    Clinton spotlights US debt as diplomatic threat Clinton says debt, deficit threaten U.S int’l position U.S. committed to tough ...Read More

Madness continues

>    >   (email exchange) >    >   On Thu, May 27, 2010 at 6:48 PM, Marshall wrote: >    UNEMPLOYMENT EXTENSION HUNG UP – Even after Democratic leadership scaled back its bill to reauthorize several domestic aid programs, reducing its impact on the federal budget deficit by $50 billion, conservative rank-and-file Democrats remain in their perpetual ...Read More

M3 falling works for me

With sufficient deficit spending private credit isn’t needed at all to sustain growth and employment, so the shift from private sector credit growth (falling M3) to 3% growth sustained by deficits of 10% of gdp is perfectly sustainable. In fact, I’d prefer, for a given size govt, lower taxes rather than higher ...Read More

China Says Reports on Euro Holdings Review Groundless

Just an ‘excuse’ for an oversold market that wanted to go up anyway. Yes, China doesn’t want a weak euro for trade purposes. But they don’t want to own the euro bonds either. The fiscal tightening in the euro zone will do the work for them and strengthen the euro, even as ...Read More

US Home Refinancing Jumps While Purchasing Slumps

Looks like a better functioning refi market with new construction and prices remaining relatively low as the tax credit ends. No sign of credit growth coming from this sector any time soon. US Home Refinancing Jumps While Purchasing Slumps By Julie Haviv May 26 (Reuters) — U.S. mortgage applications to refinance home ...Read More

Lawrence Summers on the economy

>    >   (email exchange) >    >   On Mon, May 24, 2010 at 6:50 PM, wrote: >    SUMMERS: “FOR MILLIONS OF AMERICANS, THE ECONOMIC EMERGENCY GRINDS ON” – WH adviser Larry Summers spoke to the Johns Hopkins School of Advanced International Studies today: “[T]he observation that the economy is again ascending does not mean that ...Read More


>    >   (email exchange) >    >   Two quotes from a compilation of Einstein’s writings and speeches >   that I thought you’d enjoy: >    1) “The gold standard has, in my opinion, the serious disadvantage that a shortage in the supply of gold automatically leads to a contraction of credit and also of the amount of ...Read More

US Plays Down European Crisis but China Worried

Yes, China is worried- they own the national govt paper a part of their currency reserves US Plays Down European Crisis but China Worried The United States suggested Europe’s debt crisis would have minimal impact on global growth, but China took a more pessimistic view, warning it would impact demand for its ...Read More

Spanish banking issues

The end game is unfortunately unfolding as Spanish bank losses become Spanish govt losses. Deposit insurance is only credible at the ‘Federal’ level, not the ‘State’ level. If the ECB had to write the check the issue would be inflation, but not solvency. The euro govts can no more fund bank losses ...Read More