Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Tuesday, February 10, 2009
Is the World Finally Ready to Accept the Deflationary Scenario? / Economics / Deflation
This article is part of a syndicated series about deflation from market analyst Robert Prechter, the world's foremost expert on and proponent of the deflationary scenario. For more on deflation and how you can survive it, download Prechter's FREE 60-page Deflation Survival Guide now .
The following article was adapted from Robert Prechter's 2002 New York Times, Wall Street Journal and Amazon best-seller, Conquer the Crash – You Can Survive and Prosper in a Deflationary Depression .
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Tuesday, February 10, 2009
UK Retail Price Deflation Will Soon Give Way to Inflation / Economics / UK Economy
Sales on the high street were surprisingly strong in January, reports the British Retail Consortium. Retailers saw their strongest sales growth in more than six months, beating gloomy City forecasts.
So is it time to go out and stock up on retail shares? Sadly not. Let's take a closer look at the figures...
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Monday, February 09, 2009
The Great Depression Facts: Double Dip Economic Slump / Economics / Economic Depression
Contrary to what you might believe, the Great Depression of the 1930s was not a decade-long era of economic decline. Rather, the Great Depression was made up of two distinct economic slumps - August 1929 through March 1933 and May 1937 through June 1938. As Chart 1 shows, the first recessionary period of the Great Depression was not only longer in duration, but more severe in magnitude. Notice, however, that a quite robust economic recovery/expansion occurred between the two recessions.Read full article... Read full article...
Monday, February 09, 2009
Economic Stimulus Spending Breakdown Shows Repeating the Mistakes of Japan / Economics / Economic Stimulus
The Washington Post is Taking Apart the $819 billion Stimulus Package with a couple of graphs that show how and when the stimulus money will be spent. Here is one of the graphs.Read full article... Read full article...
Sunday, February 08, 2009
Employment Cycles During Recessions / Economics / Recession 2008 - 2010
House Speaker Nancy Pelosi's blog has an interesting graph of What 3.6 Million Jobs Lost Over 13 Months Looks Like . This chart compares the job loss so far in this recession to job losses in the 1990-1991 recession and the 2001 recession – showing how dramatic and unprecedented the job loss over the last 13 months has been. Over the last 13 months, our economy has lost a total of 3.6 million jobs – and continuing job losses in the next few months are predicted.Read full article... Read full article...
Sunday, February 08, 2009
Economic Depression 2009? / Economics / Economic Depression
Whilst the great inflation/deflation debate continues (its deflation that wins, the inflationistas are being misled by the Fed's actions with its bail out facilities) we need to look at some startling new facts and projections that have appeared in the public arena. My worry, as you can gather from the title of this article, is that we face a global depression that cannot be avoided even if the events discussed below favour the results that the Central Banks et al seek.Read full article... Read full article...
Sunday, February 08, 2009
Epic Economic Battle Being Waged Between Friedman and Fischer Theories / Economics / Economic Theory
Jack Crooks writes: There is a battle being waged now in the world of economics. This battle is fierce. And no matter who wins, the impact will be felt far and wide. I dub this epoch struggle: “Godzilla vs. King Kong”
I'm not sure who will win, but I do have a favorite.
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Sunday, February 08, 2009
Emerging Markets Crumbling as Decoupling Theory Proved Wrong / Economics / Recession 2008 - 2010
Asha Bangalore (Northern Trust): Significant reduction in consumer spending“The reduction in consumer spending in the past few months is noteworthy not only because it has declined in six out of the last seven, but at the same time the savings rate has increased rapidly in an environment when income is not advancing rapidly.
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Saturday, February 07, 2009
Is Zombie Economicus Coming? / Economics / Recession 2008 - 2010
Vladimer Papava writes: Under the circumstances of the modern global financial crisis, the problem of economy zombieing has become a very topical one. If in the 1990s the theme of zombieing was basically discussed within the context of the Japanese economy alone, this problem has also extended to the US and European economies today ( Jim Willie CB, 2008. U.S. Economy Disintegrating as Government Supports Zombie Banks. The Market Oracle , December 04 ; Jim Willie CB, 2009. Gold, Zombie Banking System, Lightning, Earthquakes and Hurricanes. The Market Oracle , January 20).Read full article... Read full article...
Saturday, February 07, 2009
Financial Crisis Optimism as Deflation Gives Fed Room to Print Money / Economics / Economic Stimulus
- Thoughts on the Continuing Crisis
- The Right Direction, At Least
- The Jobs Will Come
- Can We Have a Little Inflation, Please?
- Those Wild and Crazy Analysts
When confronted about an apparent change of his opinions, John Maynard Keynes is reported to have said, "When the facts change, I change my mind. What do you do, sir?" The earnings season for the 4th quarter is almost 80% complete, and the facts are dismal. It is worse than the current data shows, and could get uglier. Unemployment is increasing, and consumers are both saving more and spending less as incomes are not keeping pace with what little inflation there is. All in all, a very different set of facts than a few quarters ago. This week we examine some of the new facts, and start out by analyzing how Thoughts from the Frontline has done over the past two years with some of the more important predictions. It should make for an interesting letter.
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Friday, February 06, 2009
Lessons from Iceland's Financial and Economic Collapse / Economics / Credit Crisis 2009
Mass protests in Iceland culminated in almost 2% of the population standing outside the Althingi parliament building on January 24, demanding the dissolution of the government. Under severe pressure, Prime Minister Haarde reluctantly resigned, citing health problems. Astonishingly, the head of the central bank and the architect of the economy, David Oddson, has refused to step down.Read full article... Read full article...
Friday, February 06, 2009
The Great Financial and Economic Crash- This is Only the Beginning / Economics / Financial Crash
The intense scrutiny recently paid to my investment strategy in the immediate wake of the financial crisis of the last six months has unfortunately obscured the central element of my larger economic forecast. The standard line has been that although I was able to predict the crash, in the form of the housing collapse and the credit crunch, my expected fallout of a weaker dollar and global decoupling has been proven false. However, this assumes that the crash has fully played out. In reality, all we have heard thus far is the overture.Read full article... Read full article...
Friday, February 06, 2009
Jaguar Inflation - A Layman's Explanation of Government Intervention / Economics / Deflation
This article is part of a syndicated series about deflation from market analyst Robert Prechter, the world's foremost expert on and proponent of the deflationary scenario. For more on deflation and how you can survive it, download Prechter's FREE 60-page Deflation Survival eBook , part of Prechter's NEW Deflation Survival Guide.Read full article... Read full article...
Friday, February 06, 2009
Trade Protectionism Solution to Rebuilding America's Industrial Base / Economics / Global Economy
Protectionism has clearly become a dirty word. Unfortunately, those in the position of dispensing awareness and perspective obviously have no idea what true protectionism is. If it were explained properly, I would venture to imagine that most here in America would be in favor of it. After all, it applies directly to us and our standard of living.Read full article... Read full article...
Friday, February 06, 2009
U.S. Jobs Contract 13th Straight Month; Unemployment Rate Soars to 7.6% / Economics / Recession 2008 - 2010
This morning, the Bureau of Labor Statistics (BLS) released the January Employment Report . Nonfarm payroll employment fell sharply in January (-598,000) and the unemployment rate rose from 7.2 to 7.6 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Payroll employment has declined by 3.6 million since the start of the recession in December 2007; about one-half of this decline occurred in the past 3 months. In January, job losses were large and widespread across nearly all major industry sectors.Read full article... Read full article...
Friday, February 06, 2009
Financial Markets Braced For Bad U.S. Non Farm Payrolls Figures / Economics / Financial Markets 2009
U.S. weekly jobless claims crashed through the 600K barrier yesterday for the first time since 1982. But the market took heart from chatter that accounting rules requiring banks to mark assets to market may be suspended. A mid-day turnaround resulted in US indices ending up yesterday by the time of the close.Read full article... Read full article...
Thursday, February 05, 2009
Davos Economists: Dumb and Dumber Save the Global Economy / Economics / Recession 2008 - 2010
[The following conversation between two top U.S. economists was recently overheard at the World Economic Forum in Davos, Switzerland. For obvious reasons, their names have been withheld - they will be referred to here as Lloyd and Harry.]
Two economists hatch a plan to save the global economy...
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Thursday, February 05, 2009
TARP, Banks Exposure to Toxic Credit Default Swaps, Road to Nationalization / Economics / Credit Crisis 2009
This week, seven major corporations announced major layoffs, adding 72,000 to the unemployed. At the same time, lending by the big banks fell. With falling demand for loans, it is little wonder that President Obama described the national economic situation as "worsening day by day." Clearly, we are heading into a deepening and severe recession that is spreading worldwide.Read full article... Read full article...
Thursday, February 05, 2009
Open Letter to Dr. Joseph Stiglitz and Challenge to Debate / Economics / Economic Stimulus
Note: Dr. Joseph Stiglitz is a professor at Columbia University, former chairman of President Clinton’s Council of Economic Advisors, former chief economist for the World Bank, and a recipient of the Nobel Memorial Prize in Economic Sciences.Read full article... Read full article...
Thursday, February 05, 2009
Exposing Three Myths of Deflation and Recession / Economics / Deflation
This article is part of a syndicated series about deflation from market analyst Robert Prechter, the world's foremost expert on and proponent of the deflationary scenario. For more on deflation and how you can survive it, download Prechter's FREE 60-page Deflation Survival eBook , part of Prechter's NEW Deflation Survival Guide.Read full article... Read full article...