Category: Economic Recovery
The analysis published under this category are as follows.Thursday, September 24, 2009
What’s a Consumer Economy Need in Order to Keep Growing? / Economics / Economic Recovery
You wanna know what is going on? David Rosenberg explains...
"US consumers are cutting back, and where they are not cutting back, they are scaling down. This new cycle is all about 'getting small' and it is deflationary. For yet another in the litany of signs pointing in the direction of social change towards thrift, have a look at what is transpiring at the upper echelons of the income strata – Now Even Millionaires See the Benefits of Budgeting on page B5 of the Saturday NYT is a must read.
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Thursday, September 17, 2009
How To Stimulate Consumer Spending and Jumpstart The Economy / Economics / Economic Recovery
My survey produced an interesting anomaly--- several respondents felt that excessive consumer spending was the primary cause of the economic problems we face today, and that spending is not to be encouraged.
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Tuesday, September 15, 2009
U.S. Economic and Interest Rate Outlook, Depression Avoided but Economy Still Faces Strong Headwinds / Economics / Economic Recovery
We have just weathered the longest (19 months?) and deepest recession in the post-WWII era.
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Thursday, September 10, 2009
Widening U.S. Trade Deficit Signals Economic Recovery / Economics / Economic Recovery
Jason Simpkins writes: The U.S. trade deficit expanded at its fastest pace in more than ten years in July, accelerated by rising oil prices and increased demand for auto parts and industrial supplies.
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Thursday, September 10, 2009
G-20 Governments Inflate the Global Economy to Economic Prosperity / Economics / Economic Recovery
Who says central bankers can’t inflate an economy to prosperity? To head-off the worst economic downturn since the Great Depression, the “Group-of-20” central banks have slashed interest rates to record lows, while politicians have funneled trillions into the coffers of the most powerful Oligarchic banks. So far, the cost of mopping up after the world financial crisis is a staggering $12-trillion, or equivalent to around a fifth of the world’s annual economic output.
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Thursday, September 10, 2009
Yet Another Jobless Economic Recovery / Economics / Economic Recovery
It looks like this will be the third jobless recovery in a row. Coming out of the last two recessions we had what has become to be known as a jobless recovery. Job growth usually surges coming out of a recession as companies rush to bring on new employees to rebuild inventories that were depleted in the downturn.
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Monday, September 07, 2009
Increased Liquidity Boosts Economic Recovery Hopes / Economics / Economic Recovery
Global economic recovery gets underway - A global increase in liquidity has been underway in an attempt to kick start economic recovery ever since the depth of the financial crisis was understood. It appears to be working. A range of countries have recorded a rise in economic growth in Q2, including Germany, France and Japan, see chart a. For many of them, this was the first rise in economic activity in over a year, after sharp consecutive quarterly declines.
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Wednesday, September 02, 2009
Western European Q2 Economic Performance Leads Recovery / Economics / Economic Recovery
Deleted.
Sunday, August 30, 2009
No Wage Growth; No Economic Recovery / Economics / Economic Recovery
A recent poll shows that most economists now believe that the recession, which began in December 2007, will end in the third quarter of 2009. There's been an uptick in manufacturing and consumer confidence, and the decline in housing prices appears to be flattening out. Unfortunately, the return to positive GDP will likely be short-lived. The current surge in production is mainly the result of President Obama's fiscal stimulus and the rebuilding of inventories that were slashed after Lehman Bros defaulted in September, 2008. These factors should boost GDP for two or perhaps three quarters before the economy lapses back into recession.
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Sunday, August 30, 2009
The U.S. Economic Recovery is a Tale of Two Economies / Economics / Economic Recovery
How well corporations have fared in the recovery depends largely on two factors.
1) How much cash on hand they had and how conservative they were heading into the recession
2) How much Uncle Sam (taxpayers) bailed them out
Wednesday, August 26, 2009
Leading Economic Indicators Predict the Recession is Over / Economics / Economic Recovery
Claus Vogt writes: Last Thursday the Conference Board released the July reading of its Index of Leading Economic Indicators (LEI). Year-over-year it was up by 0.2 percent. This is the first reading in the plus column since 2007.
So … what does this clear improvement tell us? How important is it? Does it give us an all clear signal that a strong recovery is on its way?
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Friday, August 21, 2009
U.S. Jobless Claims Shows Two Steps Forward One Step Back Economic Recovery / Economics / Economic Recovery
Initial jobless claims, a relatively good short-term economic leading indicator that is not subject to large and frequent revisions, have increased for two consecutive weeks (see Chart 1). Should we call off the economic recovery? In nearshore sailing on Lake Michigan, my mates and I practice the "ten minute rule." That is, if the wind velocity changes such that it might be advisable to put a reef into or shake one out of a sail, we wait ten minutes before putting down our beer.
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Thursday, August 20, 2009
Are we in a Consumer-less Economic Recovery? / Economics / Economic Recovery
Consumers are less optimistic about their own personal finances than at any time in the past 60 years, according to an index of consumer sentiment released Friday. (From the Christian Science Monitor, August 15th).
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Monday, August 17, 2009
Remarkable Economic Underway in Asia, Same True for the Western Economies? / Economics / Economic Recovery
It is clear that a remarkable economic recovery is underway in Asia, led by China and India, but is the same true of the developed economies? Recent economic figures for Germany and France have prompted many commentators to predict that recovery has started. But is this true or is it more a levelling off of activity? Moreover, not only have financial markets been expecting recovery, as shown by the strong rise in equities in recent months, but they have been looking for it to start in Europe ahead of the US. Further, the expectation was that, within Europe, the UK would be the first out of recession. Currency markets in particular have been marking down the US dollar relative to the pound, the euro and the yen.
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Saturday, August 15, 2009
The Statistical Economic Recovery and Thoughts on the Housing Market / Economics / Economic Recovery
The Statistical Recovery, Part Two
A Recovery Statisticians Can Love
A Few Thoughts on the Housing Market
Some Thoughts from Maine
A few weeks ago I first used the term "statistical recovery" to describe the nature of today's economic environment. Today we are going to further explore that concept, as it is important to have a real understanding of what is happening. This coming "recovery" is not going to feel like a typical one, and those expecting a "V"-shaped recovery are simply making projections from previous economic recoveries, which, based on the fundamentals, are not warranted. And of course, a few thoughts coming back from Maine are in order. There is a lot to cover, and this may take more than one letter.
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Friday, August 14, 2009
Rising Exports, the Basis for a Sustained Economic Recovery / Economics / Economic Recovery
For decades, consumer spending led the U.S. economy. As the U.S. consumer curtails their spending to replenish finances, they will not be leading the way to economic recovery this time. Rather, the U.S. will be looking to the rising export economy to provide the power behind the country’s growth in Gross Domestic Product.
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Tuesday, August 11, 2009
Savers Could Derail Britain's Economic Recovery / Economics / Economic Recovery
Is our economy recovering? And is the United States about to snap back into growth mode?
If so, then the recent stock market rallies make some sense.
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Monday, August 10, 2009
On the Brink of Economic Recovery / Economics / Economic Recovery
Economist Paul Krugman and Obama's economic adviser Laura Tyson claim U.S. Economy May Be on Brink of Recovery.
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Friday, August 07, 2009
Stock Market Rally and Economic Recovery, Experts Never Learn! / Stock-Markets / Economic Recovery
There is an inexplicable, but somehow widely held, belief that stock market movements are predictive of economic conditions. As such, the current rally in U.S. stock prices has caused many people to conclude that the recession is nearing an end. The widespread optimism is not confined to Wall Street, as even Barack Obama has pointed to the bubbly markets to vindicate his economic policies. However, reality is clearly at odds with these optimistic assumptions.
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Wednesday, August 05, 2009
Any Economic Bright Spots Amidst the Global Recession? / Economics / Economic Recovery
Deleted.