BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Oil's Price Approaches the 'Danger Zone']]>http://www.bloggingstocks.com/2010/12/06/oil-s-price-approaches-the-danger-zone/http://www.bloggingstocks.com/2010/12/06/oil-s-price-approaches-the-danger-zone/http://www.bloggingstocks.com/2010/12/06/oil-s-price-approaches-the-danger-zone/#commentsFiled under: , ,

Investors -- certainly U.S. stock investors -- would be wise to keep one eye on the price of oil, currently pushing $90 per barrel. Oil traded up 10 cents to $89.29 on Monday at mid-day.

And the reason is obvious enough: once again, oil is approaching the danger zone, from a U.S. GDP growth standpoint.

No one knows precisely at what point oil begins to substantially hinder consumer spending and slow commercial activity -- but this much is known: every $1 per barrel rise in oil decreases U.S. GDP by $100 billion per year and every 1 cent increase in gasoline decreases U.S. consumer disposable income by about $600 million per year.

Continue reading Oil's Price Approaches the 'Danger Zone'

Oil's Price Approaches the 'Danger Zone' originally appeared on BloggingStocks on Mon, 06 Dec 2010 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>consumer spendinggasoline pricesGDPgross domestic productinthenewsoil pricesU.S. economyMon, 06 Dec 2010 13:30:00 EST<![CDATA[Fiscal stimulus package's primary flaw: It was too small]]>http://www.bloggingstocks.com/2009/11/02/fiscal-stimlulus-packages-primary-flaw-it-was-too-small/http://www.bloggingstocks.com/2009/11/02/fiscal-stimlulus-packages-primary-flaw-it-was-too-small/http://www.bloggingstocks.com/2009/11/02/fiscal-stimlulus-packages-primary-flaw-it-was-too-small/#commentsFiled under: , , ,

New York Times (NYSE: NYT) columnist Paul Krugman argues quite persuasively that the major problem with the fiscal stimulus package was that it was too small, given the financial crisis and the large economic crater the accompanying, pronounced recession created.

Further, the fiscal stimulus' many benefits -- including substantial job retention in essential public services such as education -- are harder to see and not likely to translate into too much political gain for President Obama and Congressional Democrats, he said. That's consistent with a political science axiom -- often repeated by U.S. Rep. Barney Frank, D-Massachusetts -- that "Congress gets little credit or benefit for averting something." Indeed, retained jobs are hard to see, and the fact that a local public school system is is still operating with as many teachers is an accomplishment, but one that most American voters will take for granted, and not give Democrats credit for.

Continue reading Fiscal stimulus package's primary flaw: It was too small

Fiscal stimulus package's primary flaw: It was too small originally appeared on BloggingStocks on Mon, 02 Nov 2009 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Democratsfiscal stimulusGDPinthenewsjobsPaul KrugmanRepublicansU.S. economyMon, 02 Nov 2009 17:30:00 EST<![CDATA[A top U.S. socialist says President Obama definitely is not one]]>http://www.bloggingstocks.com/2009/10/13/a-top-u-s-socialist-says-president-obama-definitely-is-not-one/http://www.bloggingstocks.com/2009/10/13/a-top-u-s-socialist-says-president-obama-definitely-is-not-one/http://www.bloggingstocks.com/2009/10/13/a-top-u-s-socialist-says-president-obama-definitely-is-not-one/#commentsFiled under:

Congressional Republican rhetoric aside, President Obama does not come close to being a socialist, so says one of the highest ranking socialists in the U.S.

Frank Llewellyn, National Director of the Democratic Socialists of America, the country's largest socialist organization, told PoliticsDaily.com that President Obama is not in their ranks. "He's not any kind of socialist at all," Llewellyn said, observing that the president is "a market guy."

Continue reading A top U.S. socialist says President Obama definitely is not one

A top U.S. socialist says President Obama definitely is not one originally appeared on BloggingStocks on Tue, 13 Oct 2009 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>health care reforminthenewsobamaU.S. economyTue, 13 Oct 2009 17:00:00 EST<![CDATA[Inaction and a financial crisis don't mix]]>http://www.bloggingstocks.com/2009/03/18/inaction-and-a-financial-crisis-dont-mix/http://www.bloggingstocks.com/2009/03/18/inaction-and-a-financial-crisis-dont-mix/http://www.bloggingstocks.com/2009/03/18/inaction-and-a-financial-crisis-dont-mix/#commentsFiled under: , , , , , , , ,

Investor Jim Rogers, noted for his expertise in commodities, is someone Wall Street professionals, business executives, and economists alike pay close attention to, as he's frequently been ahead-of-the-curve regarding market and investment trends.

Still, that's not to say that Rogers sometimes can't overdo it a bit and/or does not get it wrong.

A recent chat Rogers had with Bloomberg News is an example of the latter, as the talk yielded more rhetoric, half-truths, and flat out absurd statements and not a whole not of illumination.

Continue reading Inaction and a financial crisis don't mix

Inaction and a financial crisis don't mix originally appeared on BloggingStocks on Wed, 18 Mar 2009 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking systembanksbond marketCongresscredit marketsFedJim Rogerstoxic assetsU.S. economyWed, 18 Mar 2009 16:40:00 EST<![CDATA[If the U.S. economy strengthens, Fiscal Stimulus II may be shelved]]>http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/#commentsFiled under: ,

In his column last week, New York Times (NYSE: NYT) columnist and Nobel Prize-winning economist Paul Krugman laid waste to those who argue that he's not critically assessing Obama administration programs. He offered a cogent critique of the U.S. Treasury's tardiness regarding the banking system fix.

Either temporarily nationalize those banks that are clogging the system, buy the toxic assets at unsubsidized prices, or announce some other market-valued removal plan to unclog the system, but let's put this train in motion, Krugman said, in so many words, to get to the root of the matter: We need to get credit flowing freely to facilitate commerce.

Continue reading If the U.S. economy strengthens, Fiscal Stimulus II may be shelved

If the U.S. economy strengthens, Fiscal Stimulus II may be shelved originally appeared on BloggingStocks on Wed, 11 Mar 2009 12:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorCongressDemocratsfeaturedfiscal policyfiscal stimulus packageNew York Times op-edNewYorkTimesOp-edObama administrationPaul KrugmanRepublicanstoxic assetsU.S. economyWed, 11 Mar 2009 12:15:00 EST<![CDATA[House Republicans take page out of Hoover's 1930s play book with spending freeze plan]]>http://www.bloggingstocks.com/2009/03/09/house-republicans-take-page-out-of-hoovers-1930s-play-book-with/http://www.bloggingstocks.com/2009/03/09/house-republicans-take-page-out-of-hoovers-1930s-play-book-with/http://www.bloggingstocks.com/2009/03/09/house-republicans-take-page-out-of-hoovers-1930s-play-book-with/#commentsFiled under: ,

Readers of this space know that the emphasis is placed on the economic, on commerce, and business trends, with a general avoidance of goings-on inside the beltway.

However, the financial crisis (which spawned federal bank bail-out legislation) and the nation's pronounced recession (which requires fiscal stimulus to end), has meant that things occurring in Washington once again have great relevance for investors.

And one current D.C. development must be evaluated: the House Republican leadership's decision to seek a federal spending freeze for the fiscal 2010 federal budget, The AP reported.

Continue reading House Republicans take page out of Hoover's 1930s play book with spending freeze plan

House Republicans take page out of Hoover's 1930s play book with spending freeze plan originally appeared on BloggingStocks on Mon, 09 Mar 2009 13:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>FDRfederal budgetfiscal policyGreat DepressionHooverHouse RepublicansinthenewsNew Dealspending freezeU.S. economyMon, 09 Mar 2009 13:10:00 EST<![CDATA[U.S. economy now five million jobs below full employment]]>http://www.bloggingstocks.com/2009/03/09/u-s-economy-now-five-million-jobs-below-full-employment/http://www.bloggingstocks.com/2009/03/09/u-s-economy-now-five-million-jobs-below-full-employment/http://www.bloggingstocks.com/2009/03/09/u-s-economy-now-five-million-jobs-below-full-employment/#commentsFiled under: , , ,

The number "5 million" doesn't seem like much in a world of billions and trillions.

But it's a lot when you're talking about the U.S. job market. That's because five million represents the number of jobs the U.S. economy would have to create to achieve what the U.S. Department of Labor calls "full employment."

Continue reading U.S. economy now five million jobs below full employment

U.S. economy now five million jobs below full employment originally appeared on BloggingStocks on Mon, 09 Mar 2009 12:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>featuredgdpjobsU.S. economyU.S. Labor DepartmentU.s.Economyunemploymentunemployment rateMon, 09 Mar 2009 12:10:00 EST<![CDATA[Socialism by any other name is probably a U.S. government program]]>http://www.bloggingstocks.com/2009/03/02/socialism-by-any-other-name-is-probably-a-u-s-government-progra/http://www.bloggingstocks.com/2009/03/02/socialism-by-any-other-name-is-probably-a-u-s-government-progra/http://www.bloggingstocks.com/2009/03/02/socialism-by-any-other-name-is-probably-a-u-s-government-progra/#commentsFiled under: , ,

Most investors know about the United States' anti-state political culture: in America it's private sector solution first, public sector solution second.

And, most also know that what state that does exist is anti-central government: it dates back to our federalist origination. We're even reluctant to call something 'central' for this reason: we have a central bank, but it's called the Federal Reserve, not the Central Reserve. And it's the Internal Revenue Service, not the Central Revenue Service.

Continue reading Socialism by any other name is probably a U.S. government program

Socialism by any other name is probably a U.S. government program originally appeared on BloggingStocks on Mon, 02 Mar 2009 14:35:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aigbanking sectorbankscffederalismfiscal policyfnmfreinthenewsU.S. economyU.S. GovernmentU.S. TreasuryMon, 02 Mar 2009 14:35:00 EST<![CDATA[Will the U.S. economy need a second fiscal stimulus package? ]]>http://www.bloggingstocks.com/2009/02/26/will-the-u-s-economy-need-a-second-fiscal-stimulus-package/http://www.bloggingstocks.com/2009/02/26/will-the-u-s-economy-need-a-second-fiscal-stimulus-package/http://www.bloggingstocks.com/2009/02/26/will-the-u-s-economy-need-a-second-fiscal-stimulus-package/#commentsFiled under: , ,

In the landmark, blockbuster film "Jaws" (1975), reluctant sailor, Police Chief Martin Brody (Roy Scheider), while chumming bait, gets his first look at the great white shark that's been terrorizing Amity's shoreline community. Captain Quint (Robert Shaw) and Marine Biologist Matt Hooper (Richard Dreyfuss) are immediately struck by the shark's size.

But Chief Brody is struck by another reality. "You're gonna need a bigger boat," Brody said.

In today's environment, with the U.S. economy in a pronounced recession and credit markets still constrained, the Keyensians - - which include most Congressional Democrats - - are playing the role of Chief Brody. They know what's needed to go after that shark (the recession).

'You're gonna need a bigger stimulus.' (In this case the 'bigger stimulus' means a second stimulus package.)

Continue reading Will the U.S. economy need a second fiscal stimulus package?

Will the U.S. economy need a second fiscal stimulus package? originally appeared on BloggingStocks on Thu, 26 Feb 2009 14:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutCongressDemocratsfeaturedfiscal stimulus packagegdpObamaObama administrationRepublicansU.S. economyThu, 26 Feb 2009 14:55:00 EST<![CDATA[Out with tax shelters, in with investment in productive capacity]]>http://www.bloggingstocks.com/2009/02/25/out-with-tax-shelters-in-with-investment-in-productive-capacity/http://www.bloggingstocks.com/2009/02/25/out-with-tax-shelters-in-with-investment-in-productive-capacity/http://www.bloggingstocks.com/2009/02/25/out-with-tax-shelters-in-with-investment-in-productive-capacity/#commentsFiled under: , , ,

Each economic era has incidents that characterize the age, and the one just passed, the U.S.'s decade of descent, is no different.

Investors would no doubt cite the financial crisis, bad subprime loans, perverse incentives for bank executives, large leverage, speculative housing investments, Bernard Madoff's alleged investment fraud, Enron, and WorldCom, among others, as topping the decade's major errors and scandals, and there would be no argument here.

On to the above list, yours truly will add two data points, two observations -- certainly not as well known -- but perhaps just as indicative.

Continue reading Out with tax shelters, in with investment in productive capacity

Out with tax shelters, in with investment in productive capacity originally appeared on BloggingStocks on Wed, 25 Feb 2009 15:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>gdpindustrial capacitymanufacturingU.S. economyWed, 25 Feb 2009 15:20:00 EST<![CDATA[Soros says world is witnessing end of pure, unregulated capitalism model]]>http://www.bloggingstocks.com/2009/02/23/soros-says-world-is-witnessing-end-of-pure-unregulated-capitali/http://www.bloggingstocks.com/2009/02/23/soros-says-world-is-witnessing-end-of-pure-unregulated-capitali/http://www.bloggingstocks.com/2009/02/23/soros-says-world-is-witnessing-end-of-pure-unregulated-capitali/#commentsFiled under: , , , ,

You might say that a key investor, one of the exemplars, is no longer bullish on the pure bulls. Or on the unregulated bulls. Or on the totally free market bulls.

Billionaire investor George Soros told Bloomberg News that the current global financial crisis originated during the deregulation of the 1980s, and signals the end of the free market model that has dominated capitalist countries, and indeed much of the developed world, since the the end of the Cold War with the break-up of the Soviet Union in 1991.

Continue reading Soros says world is witnessing end of pure, unregulated capitalism model

Soros says world is witnessing end of pure, unregulated capitalism model originally appeared on BloggingStocks on Mon, 23 Feb 2009 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Asiabanking sectorbanksbond marketcredit marketsEuropegdpGeorge SorosinthenewsSorostoxic assetsU.S. economyMon, 23 Feb 2009 15:00:00 EST<![CDATA[Should mass transit be made free, to stimulate the U.S. economy?]]>http://www.bloggingstocks.com/2009/02/17/should-mass-transit-be-made-free-to-stimulate-the-u-s-economy/http://www.bloggingstocks.com/2009/02/17/should-mass-transit-be-made-free-to-stimulate-the-u-s-economy/http://www.bloggingstocks.com/2009/02/17/should-mass-transit-be-made-free-to-stimulate-the-u-s-economy/#commentsFiled under: , ,

When you work in public policy or economics, you come across policies and programs in various countries in Europe and elsewhere that are innovative and/or that have otherwise have stood the test of time.

Still, the above doesn't mean they'll be implemented in the U.S. That's because the American culture and system presents its own, unique challenges and restrictions. Where else can one person -- 1 U.S. Senator -- stop the democratic process, thwarting the will of the majority, the will of the people?

Continue reading Should mass transit be made free, to stimulate the U.S. economy?

Should mass transit be made free, to stimulate the U.S. economy? originally appeared on BloggingStocks on Tue, 17 Feb 2009 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>consumer spendingdisposable incomeeconomic stimulusgdptransportationU.S. economyTue, 17 Feb 2009 17:30:00 EST<![CDATA[Where does the U.S. economy go from here?]]>http://www.bloggingstocks.com/2009/02/12/where-does-the-u-s-economy-go-from-here/http://www.bloggingstocks.com/2009/02/12/where-does-the-u-s-economy-go-from-here/http://www.bloggingstocks.com/2009/02/12/where-does-the-u-s-economy-go-from-here/#commentsFiled under: , , ,

The U.S.'s first fiscal stimulus package 'of size' since the recession's start has passed - - albeit in a modified form that decreased spending by about $140 billion over the original outline.

Further, the young President Barack Obama, like the young President John F. Kennedy, has learned that presidential honeymoons can be short inside the beltway, particularly if you have to trade policy to obtain votes both inside your party and among the loyal opposition.

Meanwhile, investors and the financial community more broader await the specifics pertaining to Obama administration's revised plan to stabilize the banking system, with the declining Dow discounting that even a successful plan will require months of systemic adjustment, and, of course, more public funds.

Continue reading Where does the U.S. economy go from here?

Where does the U.S. economy go from here? originally appeared on BloggingStocks on Thu, 12 Feb 2009 14:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CongressDemocratsfiscal policygdpmonetary policyObama administrationRepublicansU.S. economyThu, 12 Feb 2009 14:20:00 EST<![CDATA[PIMCO says recession will deepen without more fiscal stimulus by nations]]>http://www.bloggingstocks.com/2009/02/12/pimco-says-recession-will-deepen-without-more-fiscal-stimulus-by/http://www.bloggingstocks.com/2009/02/12/pimco-says-recession-will-deepen-without-more-fiscal-stimulus-by/http://www.bloggingstocks.com/2009/02/12/pimco-says-recession-will-deepen-without-more-fiscal-stimulus-by/#commentsFiled under: , , , , , , , , , ,

The manager of the world's largest bond fund, PIMCO, has laid-out in unambiguous terms the problem facing the global economy in the quarters ahead: The U.S. and global recession will worsen -- with a "second wave" of turmoil -- unless governments increase fiscal stimulus and spending plans.

"The economic setback is still in its early stages," Koyo Ozeki, head of Asia-Pacific credit research at Pimco's Tokyo office, wrote in a report published on PIMCO's web site. "Any further decline in housing prices could accelerate the downturn, intensifying the pernicious feedback loop and possibly leading to a second wave in the financial crisis in the next six to 12 months."

Continue reading PIMCO says recession will deepen without more fiscal stimulus by nations

PIMCO says recession will deepen without more fiscal stimulus by nations originally appeared on BloggingStocks on Thu, 12 Feb 2009 11:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>emerging marketsEuropean Unionfeaturedfiscal policyfiscal stimulusgdpglobal economyglobalizationIMFJapanPIMCOU.S. economyU.s.EconomyThu, 12 Feb 2009 11:50:00 EST<![CDATA[U.S. trade deficit falls to six-year low in December on declining imports]]>http://www.bloggingstocks.com/2009/02/11/u-s-trade-deficit-falls-to-six-year-low-in-december-on-declinin/http://www.bloggingstocks.com/2009/02/11/u-s-trade-deficit-falls-to-six-year-low-in-december-on-declinin/http://www.bloggingstocks.com/2009/02/11/u-s-trade-deficit-falls-to-six-year-low-in-december-on-declinin/#commentsFiled under: , , ,

container shipMany economists agree the U.S.'s pronounced recession, and the global recession, to some degree, were triggered by a series of imbalances. One of those imbalances is correcting now.

The U.S. trade deficit declined again in December 2008, by 4%, to $39.9 billion -- the lowest level since February 2003 -- on a substantial decline in imports, the U.S. Commerce Department announced Wednesday.

Further, for all of 2008, the trade deficit narrowed to $677.1 billion from $700.2 billion in 2007. In 2008, exports increased 12% to $1.84 trillion, while imports climbed 7.4% to $2.52 trillion.

Continue reading U.S. trade deficit falls to six-year low in December on declining imports

U.S. trade deficit falls to six-year low in December on declining imports originally appeared on BloggingStocks on Wed, 11 Feb 2009 10:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>emerging marketsexportsimportsinthenewstradetrade deficitU.S. Commerce DepartmentU.S. economyWed, 11 Feb 2009 10:50:00 EST<![CDATA[Martin Wolf: If the U.S. dares to succeed, it will]]>http://www.bloggingstocks.com/2009/02/09/martin-wolf-if-the-u-s-dares-to-succeed-it-will/http://www.bloggingstocks.com/2009/02/09/martin-wolf-if-the-u-s-dares-to-succeed-it-will/http://www.bloggingstocks.com/2009/02/09/martin-wolf-if-the-u-s-dares-to-succeed-it-will/#commentsFiled under: , , ,

Financial Times columnist Martin Wolf reminds investors that, contrary to some views expressed in the United States, depressions are neither good for us, nor unavoidable.

Further, despite the recent year's many reverberations, the United States remains, Wolf argues (and the U.S. Central Intelligence Agency agrees), the world's preeminent economy in the global economic system it has created and promoted. Moreover, U.S. policy errors had much to do with the current crisis, even if aided by policy errors abroad. By extension, the healing and recovery starts in the U.S. -- with America as the leader of determined, globally-coordinated action.

Continue reading Martin Wolf: If the U.S. dares to succeed, it will

Martin Wolf: If the U.S. dares to succeed, it will originally appeared on BloggingStocks on Mon, 09 Feb 2009 17:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutfiscal policygdpMartin WolfObama administrationquantitative easingTARPU.S. economyMon, 09 Feb 2009 17:20:00 EST<![CDATA[Fiscal stimulus package is big, but may not be big enough]]>http://www.bloggingstocks.com/2009/02/09/fiscal-stimulus-package-is-big-but-may-not-be-big-enough/http://www.bloggingstocks.com/2009/02/09/fiscal-stimulus-package-is-big-but-may-not-be-big-enough/http://www.bloggingstocks.com/2009/02/09/fiscal-stimulus-package-is-big-but-may-not-be-big-enough/#commentsFiled under: , ,

As the U.S. Senate prepares to vote on an $820-$900 billion fiscal stimulus bill and send it to a House / Senate conference committee, a stark reality confronted lawmakers: the stimulus package may not be large enough.

A group led by Senate Moderate Republicans and selected Democrats cut roughly $60-80 billion from the bill, in what they believe to be wasteful spending and / or items not directly related to stimulating the economy.

Economist Richard Felson said lawmakers may find themselves staring at an economy in six months that needs another stimulus jolt, and given the two options, it's better to provide the stimulus all at once, from a GDP-impact standpoint.

Continue reading Fiscal stimulus package is big, but may not be big enough

Fiscal stimulus package is big, but may not be big enough originally appeared on BloggingStocks on Mon, 09 Feb 2009 11:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CongressDemocratsfeaturedfiscal stimulus packagegdpObama administrationRepublicansU.S. economyunemployment rateMon, 09 Feb 2009 11:30:00 EST<![CDATA[NYT's Krugman: Now is really the time for Congress to choose correctly ]]>http://www.bloggingstocks.com/2009/02/08/nyts-krugman-now-is-really-the-time-for-congress-to-choose-cor/http://www.bloggingstocks.com/2009/02/08/nyts-krugman-now-is-really-the-time-for-congress-to-choose-cor/http://www.bloggingstocks.com/2009/02/08/nyts-krugman-now-is-really-the-time-for-congress-to-choose-cor/#commentsFiled under: , ,

New York Times columnist and Nobel Prize-winning economist Paul Krugman knows the situation facing the United States is very serious, so he doesn't mince words.

 columnist and Nobel Prize-winning economist knows the situation facing the United States is very serious, so he doesn't mince words.

Krugman outlined: The housing sector has collapsed. Consumers have sharply decreased their spending, due to a declining stock market, home prices, and stagnant wages. Businesses are cutting investment. Exports, the formerly one strength of the economy, are plunging, as the recession grips emerging markets. The Fed has already cut short-term interest rates to zero. And there are signs of deflation. In sum, the U.S. economy is very close to the dreaded negative spiral that tends to feed on itself, and that could continue for a long, long time without fiscal stimulus.

Hence, the nation needs to pass the fiscal stimulus package, and if anything, the current package is too small, he argued.

Continue reading NYT's Krugman: Now is really the time for Congress to choose correctly

NYT's Krugman: Now is really the time for Congress to choose correctly originally appeared on BloggingStocks on Sun, 08 Feb 2009 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CongressDemocratsfisal stimulus packagegdpKeynesObama administrationPaul KrugmanRepublicansU.S. economySun, 08 Feb 2009 10:40:00 EST<![CDATA[How the U.S. economy is like GM]]>http://www.bloggingstocks.com/2009/02/07/how-the-u-s-economy-is-like-gm/http://www.bloggingstocks.com/2009/02/07/how-the-u-s-economy-is-like-gm/http://www.bloggingstocks.com/2009/02/07/how-the-u-s-economy-is-like-gm/#commentsFiled under: , ,

General Motors Corp.'s (NYSE: GM) problems are well known: declining growth, huge debts, and enormous contingent liabilities (such as for retirement and health care benefits).

Yes, it also sounds like the U.S. economy, huh?

Well, this is the gloomy assessment from Ray Dalio, who is the chief investment officer of Bridgewater Associates. A few years ago, he warned about the overleveraged economy. More importantly, he positioned his portfolio for the New Reality.

In fact, in 2008 the Bridgewater Pure Alpha 1 fund was up 8.7% and the #2 vintage increased 9.4%.

So, what's is his thinking now? Unfortunately, it's fairly gloomy (this is according to a great interview in this week's Barron's, which is a paid publication).

Continue reading How the U.S. economy is like GM

How the U.S. economy is like GM originally appeared on BloggingStocks on Sat, 07 Feb 2009 12:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bridgewater AssociatesDepressionfeaturedGeneral MotorsGMRay DaliorecessionU.S. economySat, 07 Feb 2009 12:40:00 EST<![CDATA[Ray of Light: U.S. corporate, worker productivity continues to rise]]>http://www.bloggingstocks.com/2009/02/06/ray-of-light-u-s-corporate-worker-productivity-continues-to-r/http://www.bloggingstocks.com/2009/02/06/ray-of-light-u-s-corporate-worker-productivity-continues-to-r/http://www.bloggingstocks.com/2009/02/06/ray-of-light-u-s-corporate-worker-productivity-continues-to-r/#commentsFiled under: , , ,

These days, most investors, executives, and economists know that there's no shortage of unpleasant news regarding the U.S. economy.

Moreover, some days it's hard to find those bright spots that we know exist amid the the snow storm of the recession. Here's one: U.S. worker productivity.

Underscoring that while there are no positives to job layoffs -- each job loss is a tragedy -- citizens and investors can at least point to the fact that the U.S. workforce is becoming more productive, and corporate efficiency is improving.

Continue reading Ray of Light: U.S. corporate, worker productivity continues to rise

Ray of Light: U.S. corporate, worker productivity continues to rise originally appeared on BloggingStocks on Fri, 06 Feb 2009 13:30:00 EST. Please see our terms for use of feeds.

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