China and the US both desperately want consumer spending to grow. Instead, the Chinese economy has grown even more unbalanced. China is increasingly reliant on fixed investment, yet there are few economically viable projects. Worse yet, China is in the midst of gigantic property bubbles that will soon pop. Please consider Consumer Spending Fades in [...]
Inquiring minds are making note of the current state of affairs in Greece. Here is a quick 10-point synopsis. Current Sorry State of Greek Affairs Greece did not meet the IMF's criteria for more aid The Greek government is collapsing The Greek prime minister threatened to resign An emergence meeting of the Greek Parliament could [...]
Economic activity continues to slow nearly everywhere you look. Today's look-see is in the Philly Fed Business Outlook Survey. Responses to the Business Outlook Survey suggest that regional manufacturing activity weakened in June. The survey’s indicators for activity and new orders turned negative this month, while indicators for shipments and employment fell but remained slightly [...]
Greek, Irish, and Portuguese yields are at or flirting with new all-time highs. Moreover, things are not looking pretty for Spanish and Italian bonds. Both trade at the upper end of their respective ranges yet German bond yields have fallen since the second week in April. The prospect of a messy default in Greece is [...]
On May 26 a misguided Circuit court judge voided a Wisconsin bill that ended collective bargaining rights of public union workers because the vote violated an open meeting law. The state supreme court heard arguments from both sides on June 6th and a common-sense ruling came yesterday: Wisconsin Court Reinstates Law on Union Rights The [...]