One of the hallmarks of a smoothly functioning ec0nomy is the efficient flow of capital to the most attractive opportunities. These can exist in stocks, bonds or direct investments. At other times nothing seems very attractive, either because it’s too risky or too pricey. That’s pretty much where we are today and it’s the mark of an [...]
One of the most important questions facing currency markets these days is: What’s China up to? How Chinese policymakers decide to invest their staggering $2.5 trillion in reserves can have a huge impact on currency values worldwide. Making matters more perplexing, Beijing usually doesn’t let us in on what those decisions are, and the world’s [...]
If I had hair, I’d be pulling it out. That’s because I’ve been watching the latest, frustrating round of political hari-kari taking place in Tokyo. With Japan’s economic recovery stalling and national debt mounting, the last thing the country needs is a fruitless political squabble, but that’s exactly what the Japanese public is getting. The [...]
About six weeks ago, there was some seriously gleeful backslapping going on in Europe. A perception took hold that Europe’s leaders, employing promises of bail-outs, budget austerity programs and Eurozone reform, had managed to stem the debt crisis that ravaged through the continent in the first half of 2010. Bond markets stabilized and the euro [...]
More people are lining up for jobs via Reuters The Department of Labor reported August job numbers on Friday, and the numbers appeared to be another bad sign for the recovery. The economy lost 54,000 positions in the last full month of summer. Worse, the unemployment rate rose for the first time in four months [...]
A worrying economic question these days is the possibility of a return to negative GDP growth in the U.S, the dreaded double dip. If it happened it could pull much of the world back into recession, possibly triggering another round of financial crisis. Though all but a few consider this a low possibility, it’s not [...]
While most of the world is worried about the prospects of a double-dip recession, India is facing just the opposite problem – managing supercharged growth. The Indian economy, oblivious to the meager recovery in the West, is roaring. GDP surged 8.8% in the April-June quarter, the fastest clip in two-and-a-half years. There’s some debate among [...]
Fuld on the Offensive via Getty Images The Financial Crisis Inquiry Commission on Wednesday took on the question of what led to Lehman’s failure and I’m not sure we came away with any answers. Although we did get a much better window into the lingering bad blood between Fuld and the Federal Reserve. The FCIC [...]
Just when it seemed clear that the economy was settling into a big-time slowdown, along comes the ISM report with surprisingly good news. The ISM report captures manufacturing activity, and the fact that it was up–economists had expected a decline– sent Wednesday’s stock market on a tear (it helped too that China also reported upbeat [...]
