Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Wednesday, December 02, 2009
Dubai World a Debt Fuelled Mirage in the Desert / Economics / Global Debt Crisis
By: John_Browne
In recent days, world attention has focused on the potential debt default of Dubai World, the main government-owned corporation in the emirate of Dubai. The transformation of the city-state from a Persian Gulf backwater into the glittering financial capital of the Middle East can only be fully appreciated by those who watched it grow over the last 15 years. But as palm-shaped islands sprouted and spires shot up into the clouds, few spectators realized that Dubai was constructing the perfect metaphor of the 21st century economy: a mirage built on debt.
Wednesday, December 02, 2009
Soviet Investors Seeking $900 Billion in Compensation From Russian Ministry of Finance / Economics / Global Debt Crisis
By: Pravda
Recently, Russian officials remembered about the lost Soviet investments and decided to significantly increase compensation to the investors. For the first time after recognizing Soviet investments as internal debt, the Russian Ministry of Finance will repay 3 Russian rubles per each Soviet ruble, instead of the previous 2:1 scheme. The state cumulative investments debt is estimated to be $900 billion. Experts doubt the fairness of the new repayment scheme and believe that the rates of 1:30, 1:80 and more would be more appropriate.
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Wednesday, December 02, 2009
What You Need to Know about Dubai Debt Drama / Economics / Global Debt Crisis
By: Q1_Publishing
“U.S financial institutions could take direct hits,” warned a CNN headline after last week’s market rattling announcement from Dubai.
Like an eerie reminder of last November, when the only reasonable expectation you could have as the markets closed was that you would wake up to something unexpected, the markets opened up with a renewed sense of fear.
Wednesday, December 02, 2009
David Kotok of Cumberland Advisors: Asian Views on America / Economics / US Economy
By: Trader_Mark
David Kotok of Cumberland Advisors is a frequent guest on CNBC and unlike many of the bullish, seal clapping brigade often brings pragmatic realism to the TV screen. In his latest missive from last week he reflects on observations from his latest trip to Asia, and I think there are some very compelling insights for American readers who have been indoctrinated in American exceptionalism since birth.
Wednesday, December 02, 2009
Can Bank of Japan Overcome Deflation? / Economics / Deflation
By: Money_Morning
Jason Simpkins writes: The Bank of Japan (BOJ) yesterday (Tuesday) took steps to preserve a fragile economic recovery by pumping more short-term funds into the nation’s banking system. However, many analysts are worried that the central bank didn’t do enough to put a ceiling on the yen, and prop up its ailing corporate sector.
Wednesday, December 02, 2009
Roubini on the Dubai Debt Fallout / Economics / Global Debt Crisis
By: RGE_Monitor
deleted.
Tuesday, December 01, 2009
Dubai Financial Meltdown to Trigger More Debt Defaults and Economic Contraction / Economics / Global Debt Crisis
By: Mike_Whitney
The Dubai virus has been contained. There won't be another financial system meltdown. But the lessons of Dubai are hard to ignore. Global shares started tumbling at the first whiff of trouble; no one bothered waiting for the details. Someone yelled, "Fire" and the panic began. It's a good indication of how jittery investors still are.
Tuesday, December 01, 2009
Morgan Stanley on UK Sovereign Debt/ Currency Potential Risks for 2010 / Economics / UK Debt
By: Trader_Mark
As investors quickly forget about Dubai, and shield their eyes (apparently using now almost limitless US dollars or Japanese yen) from any potential sovereign road bumps ahead [Nov 27, 2009: UK Telegraph - Greece Tests the Limits of Sovereign Debt as it Grinds Toward Slump] Morgan Stanely (MS) Europe is out with an interesting report for 2010 that highlights some "fat tail" risks, one of which is: UK becomes the first of the G10 to have a major fiscal crisis as elections lead to a hung parliament.
Tuesday, December 01, 2009
Debt Fuelled Zombie Capitalism, Bernanke "Marching Ignorantly Forward" / Economics / US Debt
By: Mike_Shedlock
Australian economist has another blockbuster post on the dynamics of debt deflation and the Great Financial Collapse. Please consider Debtwatch No 41, December 2009: 4 Years of Calling the GFC.
Read full article... Read full article...During a debt-driven financial bubble, which is the obvious precursor to a debt-deflation, rising levels of debt propel aggregate demand well above what it would otherwise be, leading to a boom in both the real economy and asset markets. But this process also adds to the debt burden on the economy, especially when the debt is used to finance speculation on asset prices rather than to expand production–since this increases the debt burden without adding to productive capacity.
Monday, November 30, 2009
A Faith-Based Economic Recovery / Economics / Economic Recovery
By: TheDailyReckoning
Joel Bowman writes: Today we have something extraordinary for you to ponder. We call it, in the prescribed, politico-doublespeak of the times, a “recovery.” Allow us to elaborate for just a moment…
Monday, November 30, 2009
U.S. Debt, The Good, the Bad and the Ugly in Real Time / Economics / US Debt
By: Frank_Holmes
Anyone who has visited New York has probably seen The National Debt Clock, a digital readout of how much the federal government owes its creditors. The speed at which that number grows is daunting.
Monday, November 30, 2009
Blame Keynes, Not China for America's Economic Mess / Economics / Economic Theory
By: Gerard_Jackson
Every financial crisis seems to produce its own crop of economic fallacies. The Great Depression gave us the mercantilist fallacy of "demand deficiency" that Keynes dressed up in mathematical garb and convoluted language. Instead of the boom's inevitable bust being treated as a case of "disproportionalities" that needed to be liquidated if the equilibrium was to be restored it was now defined as a simple case of insufficient demand could be easily corrected by increased government spending, i.e., a monetary expansion. (Incidentally, Keynes never argued that this policy would have restored full employment in the 1930s, quite the opposite. Those who argue to the contrary should read T. W. Hutchison's Keynes v. the 'Keynesians'...?, The Institute for Economic Affairs, 1977.)
Friday, November 27, 2009
The Forgotten Economic Depression of 1920 / Economics / Economic Depression
By: Thomas_E_Woods
It is a cliché that if we do not study the past we are condemned to repeat it. Almost equally certain, however, is that if there are lessons to be learned from an historical episode, the political class will draw all the wrong ones — and often deliberately so.
Far from viewing the past as a potential source of wisdom and insight, political regimes have a habit of employing history as an ideological weapon, to be distorted and manipulated in the service of present-day ambitions. That's what Winston Churchill meant when he described the history of the Soviet Union as "unpredictable."
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Thursday, November 26, 2009
Mike Shedlock, a Deflationist Lashing Out at Nouveau Inflationists? / Economics / Deflation
By: Nadeem_Walayat
I recently wrote an article as part of a series on my new inflationary scenario and outlook for the world economies and markets (Deflationists Are WRONG, Prepare for the INFLATION Mega-Trend ), which drew the attention of Mike Shedlock who quotes and responded to the following text -
Thursday, November 26, 2009
Soaring Unemployment and Double-dip Recession? / Economics / Recession 2008 - 2010
By: Mike_Whitney
Barack Obama's chief economic advisor, Lawrence Summers, is determined to sabotage a second round of stimulus. And, he's getting plenty of help, too. Congressional Democrats are dragging their feet because they're worried about the political backlash and midterm elections, the GOP deficit hawks are looking for a way they can derail the Obama agenda and reestablish their bone fides as fiscal conservatives, and the bailout-traumatized American people are simply opposed to anything that generates more red ink. Even Obama has joined the fray and started badmouthing stimulus stressing the importance of living within our means and trimming the deficits. So it looks like a done-deal; no more stimulus. There's only one problem, without another blast of stimulus the economy is headed for the skids.