We’re living in bizarro world. We’re watching CNBC and everyone’s talking about the trade deficit of $42 billion in May, and how it’s “worse” than the $40 billion that economists were expecting.
We’re confused though: A wider-than-expected trade deficit is a sign of more robust return to pre-crisis trade/demand than folks had expected.
Want to see what “better” than expected trade numbers looked like? Go back during the crisis, when that fell sharply.