Friday, July 30, 2010
Vital Statistics
United States |
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Try as you might, it’s hard to find positive news out of the United States. We could try and put a positive spin on the numbers: the number of jobless increased in May, but by half the average number in the previous six months. Overall productivity is up, if we ignore the durable goods manufacturing sector, which is imploding by any measure used. And of course, inflation is at zero. In »»
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30 Apr 2009
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The news out of the United States continues to be bad on all fronts. Unemployment sits at 8.1 percent (2.6m job losses in the last four months, and 851,000 in February alone). Even the usual productivity gains are absent, down 0.4 percent in the fourth quarter. And for the first time (yes, the first time) in the current downturn, the United States is in a technical recession, having suffered »»
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16 Jul 2008
Freddie Mac and Fanny Mae might be catchy nicknames for lending organizations, but the hole they have dug for themselves is sufficiently deep for it to affect the Federal Reserve’s decision on whether or not to raise the federal funds rate in early August.
By definition, the business that Freddie Mac (more formally, the Federal Home Loan Mortgage Corporation) and Fanny Mae (the Federal National Mortgage Association) does is more open to »»
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01 May 2008
The US Federal Reserve has once again cut the federal funds rate, to just 2.0%. Despite soaring energy and food prices, the Board acted to stimulate the economy by making credit more accessible. The Fed believes there will be a flattening out in energy prices in particular in the coming months, reducing the impact of that component on overall inflation.
And despite all the scare-mongering about how the US is in recession, March GDP »»
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19 Mar 2008
The Fed cut rates again on Tuesday, this time by 75 basis points, bringing the rate to just 2.25 percent, the lowest since 2004. This was coupled with other extraordinary action, such as a 25 basis point cut in the discount rate, and the extension of a US$30 billion line of credit to cover investments by Bear Stearns. The calamity to befall Bear Stearns, the fifth-largest investment bank in the US, is beginning to reveal just how »»
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19 Feb 2008
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Of course, the spectre of slowing global growth and on-going financial market turmoil haunts the current economic climate. And it would be easy to overplay the gloomy card. For example, US GDP in the December quarter rose 0.2%, taking it to 2.5% above year-earlier levels. Thus, US GDP averaged 2.2% growth over the 2007 calendar year. Some have concluded a »»
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US & Australia continue to grow
Fed acts twice, as US economy bounces back
Updated US employment growth numbers show increase not decrease.
US productivity up slightly
US Fed holds rate at 5.25% in August
US will still grow - but at a slower rate BERL Forecasts June 2007
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