Markets

Sorry, But 3.5% Growth Is Not A “Surge”

“Economy poised for surge as most accurate economist sees U.S.” reads the Bloomberg headline. So it’s a major disappointment to read what Bloomberg considers a “surge”: 3.5 per cent growth in 2010.
Sorry, But 3.5% Growth Is Not A “Surge”
Markets

Goldman: Admit It, This Recovery Sucks

Read the writing on the wall, says Goldman Sachs top analyst Jan Hatzius in a recent note. The recovery sucks. Or, as he puts it, the recovery is “More ho-hum than ho-ho-ho.”
Goldman: Admit It, This Recovery Sucks
Markets

WEAK: Consumer Sentiment Misses Again

Consumer sentiment for December hit 72.5 in the Reuter/University of Michigan survey, a rebound from the November reading of 67.4 but l below expectations of 73.5. We usually try to stay away from making calls about market direction but we’ll venture a guess about today.
WEAK: Consumer Sentiment Misses Again
Markets

70% Of The Q3 GDP Growth Was Cash For Clunkers

[preserve] [/preserve] [preserve] [/preserve] Today’s downward revision is far worse than it first appears. While third quarter GDP was revised down by a 0.6% (2.2% vs. 2.8% previously), the contribution from motor vehicle output (which was massively stimulated by Cash for Clunkers in a one-off fashion) remains enormous.
70% Of The Q3 GDP Growth Was Cash For Clunkers
US

A New Communist Society Emerges In Virginia!

Out-of-work Americans are joining a communist society in Virginia to escape the hardship of the recession. The commune has an organised labour system where residents put in 42 hours of work each week, and get full accommodations including children daycare among other services in return.
A New Communist Society Emerges In Virginia!
Markets

The Inflation Bomb Hiding On The Fed’s Balance Sheet

However much it infuriates people like Paul Krugman to hear analysts warn about inflation while the economy is still sputtering along joblessly, there is good reason to worry about the ability of the Federal Reserve to prevent the massive build up of the monetary base from resulting in out of […]
The Inflation Bomb Hiding On The Fed’s Balance Sheet
Markets

Rosenberg: If The Banks Don’t Extend Credit Soon, The Market Is Toast

We’re not sure how much stock to put into correlations such as this one — especially since LOTS of charts have this dual-hump pattern over the last several years — but this is still some interesting commentary from Gluskin-Sheff’s David Rosenberg on the connection between monetary velocity and the stock […]
Rosenberg: If The Banks Don’t Extend Credit Soon, The Market Is Toast
Markets

Mission Not Accomplished: All We’ve Done Is Increase Our Debt Load

Although Barack Obama has refrained, at least for now, from delivering triumphant speeches in a naval flight suit, there is nevertheless a strong tone of accomplishment emanating from the United States president and his deputies. Over the weekend, top White House economic adviser, Lawrence Summers, even pronounced that the recession […]
Mission Not Accomplished: All We’ve Done Is Increase Our Debt Load
Strategy

Small Business Optimism Swoons

From OPEN Forum: Small Business Optimism dipped slightly during November.  The dip is somewhat surprising given recent modest improvements in consumer confidence and initial signs that the holiday shopping season is shaping up to be stronger than last year.
Small Business Optimism Swoons
Markets

Larry Summers: Job Growth Coming This Spring

November’s better than expected jobs data, whereby job losses hit a 23-month low, has emboldened white house chief economic adviser Larry Summers to  forecast a U.S. jobs recovery beginning this spring.
Larry Summers: Job Growth Coming This Spring
Markets

The Recovery Is Faltering

As the summer was turning into a fall, there was a really brief period when it was super-cool to believe in the V-shaped recovery.
The Recovery Is Faltering
Markets

Fat People Cannot Get Jobs And Jobless People Are Fat

Last week, we highlighted a scary county-by-county map that a commenter posted to #tips showing metastasizing unemployment growth. Today, it occurred to us that we’d seen a graphic like that somewhere before: A CDC map of obesity by county.
Fat People Cannot Get Jobs And Jobless People Are Fat
Markets

We’ve Still Got A LONG Way To Go On Jobs

As shown by Calculated Risk below, despite today’s positive jobs data, we still have a very long way to go until unemployment returns to normal levels. Yet this can be read in a positive light as well — we still have much room for improvement when it comes to market […]
We’ve Still Got A LONG Way To Go On Jobs
Markets

Surprise! The U.S. Services Sector Is Contracting Again

Last month’s slight down-tick in the Institute for Supply Management’s (ISM) services index has turned into something more substantial — falling to 48.7. This is well below the expected value of 51.5 and means it has now dropped two months in a row.
Surprise! The U.S. Services Sector Is Contracting Again
Markets

Pending Home Sales Index Shows Largest Gain Ever

Pending home sales in October rose for the 9th consecutive month, according to the National Association of Realtors (NAR) calculations. The index soared the most ever, undoubtedly due to both the depths it came from and the first homebuyer tax credit.
Pending Home Sales Index Shows Largest Gain Ever
Markets

Detroit’s Raccoon Hunter Taking Holiday Orders

Gleamie Dean Beasley earned himself a reputation this year as Detroit’s de facto raccoon hunter. Beasley sells the pelts and the meat to people for a fair price and this holiday season, he’s taking orders in advance:
Detroit’s Raccoon Hunter Taking Holiday Orders
Strategy

3 Strategies For Riding The Crest Of The Economic Recovery

: As the economy glides into something that vaguely resembles a recovery, the workplace isn’t the battleground that it was at this time last year, but employees are nonetheless bruised and exhausted. There’s no escaping that a marginal economic recovery brings with it a brand new set of human capital […]
3 Strategies For Riding The Crest Of The Economic Recovery
Markets

Improved Forecast For U.K. GDP

While economists recently dinged U.S. third quarter growth to 2.8 per cent from a previously reported 3.5, the opposite happened today in England. New data show the U.K. GDP shrinking by 0.3 per cent in the third quarter, less than last month’s estimate of 0.4 per cent.
Improved Forecast For U.K. GDP
Markets

10 Reasons Why We Will See a U-Shape Recovery

Editors Note: The Following is an excerpt from RGE premium content, “10 Reasons Why We Will See A U-Shape Recovery” which is available to paid clients. After a free-fall of output in the last quarter of 2008 and the first quarter of 2009, second derivatives of economic activity have turned […]
Markets

Krugman: We’ll Never Get Back To Full Employment At This Rate

While lots of us were expressing relief that the slip dowward in the revised economic growth numbers out from the government was not worse than expected, Paul Krugman came in with a reality check. The revised number is so low that it means the unemployment rate will remain elevated…forever.
Krugman: We’ll Never Get Back To Full Employment At This Rate
Markets

U.S. Rail Traffic Sinks 9%

U.S. rail traffic last week fell 8.9% year over year and was 17% lower than the same week in 2007. Thus while traffic is still down substantially, it appears to be getting better.
U.S. Rail Traffic Sinks 9%
News

Obama’s Approval Rating Dips Below 50%

With voters unhappy about his handling of the economy and the war in Afghanistan, President Barack Obama’s approval rating has fallen below 50% for the first time in Quinnipiac polling.
Obama’s Approval Rating Dips Below 50%
Markets

No-Frills Hotels Are Booming

While companies like Marriott struggle to fill rooms, toned-down “lite” hotels are thriving thanks to businesses cutting back on expenses and limited consumer spending:
No-Frills Hotels Are Booming
Strategy

Business Hiring Plans Are Still Very Weak

From OPEN Forum: The number of businesses expecting to hire new employees in the following three months began falling in summer 2007, a few months before the recession began (this makes sense, as it’s a leading indicator).  Fortunately, the measure recovered somewhat this summer, although it’s still in negative territory.
Business Hiring Plans Are Still Very Weak
Markets

NY Fed: The Recovery Sputtered In October

The New York Fed’s Empire State survey confirms what a lot of other on-the-ground economic reports (like rail) are suggesting, that the recovery, while still alive, is inconsistent, and certainly not going in a straight line.
NY Fed: The Recovery Sputtered In October
News

America’s So Broke, The ATMs Are Giving Out $5 Bills

Last night, we found ourselves onon Avenue C and 8th street (NYC) and in need of some cash. We were blown away by what the 1980s-esque ATM display at the nearby credit union told us: You can withdraw money in increments of five bucks. You know times are tough when […]
America’s So Broke, The ATMs Are Giving Out $5 Bills