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Let's play a game

Let's play a game. The game is called 'Agree or Disagree'.To play this game we will look at a lengthy article by Steve Roach enh1d On the Road to Global Rebalancing. In italics are paragraphs or statements by Stephen Roach. My responses are in normal print. Here goes:It was exactly six years ago when I first coined the term, “Global Rebalancing.” The equity bubble had burst, America was heading into recession, and an unbalanced, US-centric global economy was in trouble. A rebalancing was in order, I argued at the time -- and the sooner the better! AgreeAn unbalanced world was able to buy time. With the benefit of hindsight, it is not that difficult to figure out how. Fearful of a Japanese style deflation in the aftermath of a burst equity bubble, America’s Federal Reserve rushed to the rescue -- spearheading a massive monetary easing that pushed short-term interest rates down to the unheard of 1% threshold. That prompted a seamless move from one asset bubble to another, as

Let's take a look at a point counterpoint discussion of inflation. The October...

Let's take a look at a point counterpoint discussion of inflation. The October 8 2007 issues of Newsweek provides the point: There's No Inflation (If You Ignore Facts). BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? Let's take a look at a point counterpoint discussion of inflation. The October 8 2007 issues of Newsweek provides the point: In the first eight months of 2007, the consumer price index—the main gauge of inflation—rose at a 3.7 percent annual rate. That's more than 50 percent higher than the mild 2.3 percent core rate. The prices of energy and food are soaring, at 12.7 percent and 5.6 percent annual rates, respectively, and have been doing so for years. As a result, the CPI—including food and energy—has risen 12.6 percent since July 2003, for a compound rate of about 3 percent. Signs of inflation are evident throughout the economy. When investors fear a rising inflationary tide,

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? The lawsuit arose when Leegin Creative Leather stopped shipping its Brighton tooled-leather accessories to Dallas-area shop Kay's Kloset because the store was selling the goods more cheaply than Leegin wanted. After Leegin cut the store off, PSKS, parent of Kay's Kloset, filed an antitrust lawsuit. Burlington Coat Factory, which filed a brief supporting PSKS, worries about the impact on the off-price chain. Burlington attorney Stacy John Haigney called the decision 'an open invitation to manufacturers and full-price retailers to fix retail prices at a higher level. It will be detrimental to our business, but I really can't tell how much.' The Consumer Electronics Association says it supports the court decision because, it says, 'sales training, industry marketing and after-sales service' are what many TV and audio gear buyers look f

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? Short sellers are betting against U. S. stocks like never before as the Standard & Poor's 500 Index approaches an all-time high. That's making some of the biggest bulls even more optimistic. 'What the short seller appears to be doing is doubling down,' said Kenneth Fisher, who oversees about $40 billion as chairman of Fisher Investments in Woodside, California. 'You love to see it, because if you believe there is a basic driver to the bull market, they're going to get run over.' The amount of shorting -- where traders sell borrowed stocks expecting to buy them back after prices fall -- jumped to 3.1 percent of the total shares listed on the New York Stock Exchange this month. That's the highest since at least 1931, according to Bespoke Investment Group LLC, a research firm in Mamaroneck, New York. The wagers represent billio

I asked Madame Zalora what she thought of Centex's latest sales...

I asked Madame Zalora what she thought of Centex's latest sales pitch. Her Crystal Ball replied a sarcastic 'big deal'.Her more detailed response (that I had to pay extra for) was:A 30-40 day price guarantee? Who cares? Besides that is listing price which is unlikely to move as much as discounted prices and incentives. She also admonished me.'You really did not need a crystal ball to answer that, now did you?''How long will it be before they give a one year price guarantee?' I responded.'Sorry, Madame Zalora only answers one question a day per customer' was all she said. Mike Shedlock / Mishhttp://globaleconomicanalysis. blogspot. com/

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? For almost thirty years, count them, for almost thirty years people like you have predicted that our economy will collapse and the end of the consumer. Throughout all of those years, it didn't happen. No matter how many logical arguments the 'gloom and doom' crowd has made, it hasn't happened. Nimesh, I have only been on the deflation bandwagon for a few years, not thirty. However, you are correct about one thing: Some notable people have indeed been calling for a collapse for nearly thirty years. However, that does mean an economic collapse One of the reasons the Fed was created was to manage the economy and prevent further depressions. Guess What? The biggest deflation in history, the great depression, happened 17 years later. At one time economists thought that inflation and recession could not happen at the same time. It happened anyway. A

Walking away is becoming increasingly popular

Walking away is becoming increasingly popular. The practice has now spread to commercial real estate. Michael Dell of Dell Computers is the latest walker. He is walking away from a sweetheart call centre deal in Edmonton Canada. BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? Dell Canada is closing its Edmonton call centre after only three years, putting more than 900 people out of work. The computer giant said the move was part of company-wide efforts to 'increase the efficiency of its business, improve performance and provide better value for customers.' Dell was lured to Edmonton by a 20-year sweetheart lease deal at Edmonton Research Park, and has consistently touted the call centre as a top-performing global facility. The deal with Edmonton Economic Development Corp. included a $1-a-year lease on 15 acres of land, and a property tax rebate worth $1.1 million. It becomes void if the number of em