Monthly Archives: August 2011

The inexplicable American Consumer

by Wolf Richter •  • Comments Off on The inexplicable American Consumer

Consumer confidence fell off a cliff and hit levels not seen since April 2009, and yet, consumers spent with abandon and made up the difference by piling on debt, at least for now. What gives?

Dear Ben, Please Print us More Money

by Wolf Richter •  • Comments Off on Dear Ben, Please Print us More Money

We want you to prop up the stock market. Everybody knows it’s a Ponzi scheme that will collapse without your support. You don’t want us to end up like Bernie Madoff’s clients. No, Ben, we love Ponzi schemes. We get in early and get out before they collapse. That’s why we’re rich. The bad thing is that they sometimes collapse before we can get out. But you’ve bailed us out twice in the last couple of years….

Tokyo Tidbit: Permit Required For Deadly Pitfall

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Birthday surprise for her husband: a woman and five friends dug a deep hole on a beach in Ishikawa Prefecture, put mattresses at the bottom, covered the hole with a plastic sheet, and sprinkled sand on it. Her husband would fall in and everyone would have a grand old time. The outcome was tragic. And they didn’t even have the required permit.

Oh No, The Inventory Correction Is Confirmed

by Wolf Richter •  • Comments Off on Oh No, The Inventory Correction Is Confirmed

Awful economic data and corporate announcements confirm: orders are plummeting, the dreaded inventory correction is here, and a recession is now guaranteed. In our already miserable economy, this is going to be a rough ride. Fasten your seatbelt.

‘Let the Euro Die,’ Said the Woman Who Could Be the Next French President

by Wolf Richter •  • Comments Off on ‘Let the Euro Die,’ Said the Woman Who Could Be the Next French President

Marine Le Pen, president of the Front National and one of the top contenders in the 2012 presidential election, said the unspeakable. And the media printed it. And now word is out.

Knife Drawn, the Bundesbank Attacks the ECB, and German Industrialists Tremble

by Wolf Richter •  • Comments Off on Knife Drawn, the Bundesbank Attacks the ECB, and German Industrialists Tremble

The Bundesbank lashes out at the ECB for its decision to print money and buy crappy bonds of eurozone countries that lived high on the hog for years but are crumbling under a pile of debt. This puts it on collision course with the German industrialists that got rich off those countries. Angela Merkel is caught in between.

Swiss Franc Wreaks Havoc In Switzerland

by Wolf Richter •  • Comments Off on Swiss Franc Wreaks Havoc In Switzerland

The run-up of the Swiss franc entailed a stock-market crash, gigantic hits to wealth invested overseas, and big losses in Swiss pension funds. Companies are reeling. Layoffs and a recession are next. The Swiss National Bank (SNB) flooded the market with francs, intervened in the currency markets, and forced real interest rates into negative territory. Without much success.

Oops, Inventory Correction

by Wolf Richter •  • Comments Off on Oops, Inventory Correction

We really don’t need this. First it was rumors, now it has been announced in an earnings call. Two harmless sounding words: inventory correction. In a healthy economy, it causes a run-of-the-mill business cycle recession. In our economy, it can get ugly. Watch out, second half.

Fed’s Policies Slam Us Again

by Wolf Richter •  • Comments Off on Fed’s Policies Slam Us Again

July inflation is red hot, real wages are down, and real yields are more negative than ever, exactly what the Fed wants. The destruction of the American middle class continues.How these policies will pull us out of our economic debacle is mathematically unclear.

NY Fed: Execs Are Drinking Their Own Kool-Aid

by Wolf Richter •  • Comments Off on NY Fed: Execs Are Drinking Their Own Kool-Aid

The New York Fed proves it (unwittingly): Executives are optimists who invariably, and falsely, assume the future is better than current conditions, though realty is staring them in the face.