Even as investors get more and more bullish about the outlook for the U.S. economy, the economy’s underlying foundation continues to erode.
An article on Bloomberg reported that US Treasury Secretary Timothy Geithner said, “The US unemployment rate may not peak until the second half of 2010, even as the broader economy shows signs of improvement.”
Currencies trade in a tight range…Pesos, loonies and reals in the spotlight…The Mogambo on a Thursday!YAHOO!…Jobs reports dominate today & tomorrow…And Now… Today’s Pfennig!
With the global economy on the mend, could gold be gearing up for another record-setting run? It sure looks that way.
The brave new world has already arrived in Ireland, where your co-editor is currently based. Ireland exemplifies the boom-bust economics that has shattered the global economy.
“U.S. stocks strike solid gains on second-quarter GDP,” ran a gleeful headline yesterday on MarketWatch.
“Investors, showing no sign of concern about the outlook, took the GDP report at face value and pushed stocks up sharply on the news,” ran another breathless piece of editorial, following data that showed U.S. GDP up 3.3% in the second quarter.
But as Addison Wiggan and Ian Mathias pointed out yesterday in Agora Financial’s 5. Min Forecast, the government’s stimulus check program and a weaker dollar were partly responsible…
The government’s bailouts of failed banks and its economic stimulus splurge widened the federal budget deficit to $102.8 billion in July.
Bond king Bill Gross would like to see the budget deficit reach $1 trillion.
Last month, he wrote an open letter to Barack Obama asking him, if he is elected, to save the US economy by upping federal spending by a further $500 billion.
According to Dan Amoss, Gross’s prescription for the economy would do more harm than good. For a start it would cause the price of oil imports to spike…