Bernanke clarifies by creating mist of confusion

“I think I should warn you,” said Ben Bernanke, “if you think I am making myself clear, then that means you have probably misunderstood me.” Witty, and a tad daft. It is just that actually those words were not spoken by Mr Bernanke at all; rather they were spoken by...Read More

News on the US to even make the cynics a little less cynical

If you like your news with a twist of misery and a slice of disaster thrown in, then apologies, you will be disappointed with the latest economic data coming out of the US. On the other hand, if you like to be cheered up, read on.

The latest batch...Read More

Posted Jun 26, 2013

US medicare time bomb begins to look more like a pretty time piece

As you know the US is effectively bust. There is a long list of perennial bears on the US economy who claim that commitments to future medical care costs mean the US is living off borrowed time.

They produce their calculations of woe like this. They look at how...Read More

Posted Jun 19, 2013

US economy sees good news temper bad

It has been rush of good news on the US economy, but last week nearly saw it all spoilt. Thank goodness for Friday, because news out then just about saved the day, and stopped the good turning to bad.

Just to remind you: US consumer confidence has hit a...Read More

Posted Jun 11, 2013

US economy close to shaking off last vestiges of the finance crisis

Apologies in advance for sounding a tad gushing, but the evidence flowing out of the US in the last few days suggests that the US economy is very close to full recovery. The finance crisis of 2008 may be close to being banished to the history books. It may not...Read More

Posted May 31, 2013

US banks see biggest profits ever: is the US back

Reinvention: that is what the US of A is good at. And data published by Federal Deposit Insurance Corporation last night may give the strongest indication yet that the US has reinvented itself, and is now on the road to recovery.

Earnings at US banks during Q1 were $40.3...Read More

Posted May 30, 2013

US consumers create recovery, or does recovery create US consumers?

The latest news out of the US really was good. But one question remains: is the US engaged in some kind of Ponzi Scheme or is the recovery real?
Here is the idea: you borrow, say, £100 off one set of people, and £200 off another set. You use the...Read More

Posted May 29, 2013

Eurozone still in recession, but is that a hint of promise from Greece?

The recession continues, but maybe there were a couple of bits of good (ish) news lurking in the latest data on the economies that make up the Eurozone.

The Eurozone is still in recession. GDP contracted by 0.2 per cent in Q1 of this year, according to data out yesterday. The...Read More

Posted May 16, 2013

US debt is falling: does this prove austerity does not work?

It’s a bit silly isn't it? How can you reduce debt by spending more? That great raconteur of our times George Osborne likes to point out the evident ridiculousness of such an idea. With that cheeky grin of his, he says: “I don’t believe you can cut debt by spending...Read More

Posted May 16, 2013

US set for recovery?

What is better: boom and bust or gradual?

In the US it was boom time in the noughties. Real house prices soared some 40 per cent between 2000 and 2006. Household debt leapt from around 90 per cent of income in 2000 to around 130 per cent in 2006.Read More

Posted May 13, 2013

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