Wages rebounded from the dip last month (but don't get too excited as per details below). Also, there were big upward revisions to many prior numbers.
Just as Detroit is coming out of bankruptcy, the entire county is about to go under.
It's difficult keeping up with the news. As soon as I finished Germany's "Time Pressure" Thesis; Noose Tightens on Europe, significant news on the debt standoff hit the press.
Today German Chancellor Angela Merkel proclaimed that the Greek Diplomatic Offensive Is Failing.
Because of all the distortions about what constitutes unemployment and employment, including frequent double-counting of part-time employment in the payroll survey, I believe it is purposely difficult to calculate a realistic unemployment rate.
In 2014 there were six eurozone countries whose debt-to-GDP ratio went over the 100% threshold. Two additional countries will pass that barrier in 2015.
In spite of obvious merit, my proposal would never fly. The president would veto it. So how about a more modest corporate flat-tax with no loopholes, at a rate far lower than most of Europe?
I remain amused by all the pundits who think the US has "decoupled" from the global economy and will grow stronger in 2015.
In spite of promising that deflation would not hit again, here we are, and for the second month too.
Inflationists claim that is a trend to oblivion. And actually it is. But it's a slow trend towards oblivion with intermittent disruptions as the following chart shows.
I propose that after this relentless rally in home prices, the "new rules" are too risky. Low down payments would have made more sense actually at the bottom of the market, when standards tightened.
The casualties continue to pile up in the wake of the Swiss National Bank dropping its peg to the euro.
As late as last Friday polls expected New Democracy would lose but not get trounced.
The problem with the global economy in general is debt. You cannot cure a debt-deflation problem via attempts to force more debt into the system. It is axiomatic the cure cannot be the same as the disease.
In the wake of ECB's 60 billion a month QE madness (see "QE already Working" Says IMF Lagarde; Ho-Hum Details Announced; Gold the Place to Be), one might be wondering what it may do to European bond yields.
Every Obama proposal is Dead-on-Arrival. Obama may as well fire a spaceship at the sun. The spaceship would melt long before it got there. Here's the deal: Like president Obama, the ECB is impotent.
During the last dozen years or so, the only State of the Union Addresses I failed to watch were because I was on the road. On Tuesday, I purposely missed one.
A Bloomberg editorial on what the ECB needs to do is rather amusing. The article headline, albeit true in and of itself, contradicts the body of the article.
Yet, politically speaking in general, last minute undecided voters in elections (at least in in the US) tend to break strongly in one direction. I see no reason why Greece should be any different.
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