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Recession or high inflation?
A stagflation is a combination of a recession and an inflationary environment; the economy is contracting yet inflation is high. If the governments were doing their jobs properly this wouldn’t happen, but since they all want to get re-elected they tried to continuously pump up the economy so that it grows at […]
Interest Rates:
The FOMC did as expected and cut short term interest rates by 25 basis points and as you would expect they also signaled their concern about inflation even though fighting inflation isn’t their priority.
Economics:
Stagflation from the US might be spreading to Canada as monthly GDP in February dropped 0.2% and the industrial producer price […]
Housing:
There were more negative housing statistics released this morning. The most reliable measure of housing prices is the S&P Case/Shiller Home Price Index. The index (for 20 cities) reported that y/y prices were down 12.7% for February. This represents the biggest fall since the index was created. For the month, the price decline accelerated to […]
There’s lots of talk about what Helicopter Ben Bernanke and the FOMC will decide to do with short term interest rates next week. Apparently the market is no longer pricing in a 50 basis point cut in rates with some economists expecting only 25 or even no rate cuts. My feeling is that Helicopter Ben […]
Recap:
Dow was up 1, TSX up 16. Merrill Lynch wrote down another $6.5 billion and posted its 3rd straight loss, 3000 jobs to be cut. On a positive note, Google’s profit rose 30%.
Economics:
Canada’s inflation for March was up 0.4% on a m/m basis and up only 1.4% on a yearly basis; this represents a 14 […]
Recap:
Dow was up 60 and TSX was up 112. I’m not really sure why the Dow was up other than Johnson and Johnson posted okay results; I guess investors took it as a positive sign that the market woes hadn’t infected all sectors of the economy. TSX was up probably because oil hit another record […]
Recap:
The Dow Jones and TSX were both down 256 and 226 points on Friday respectively probably the result of General Electric posting lower profits q/q and also lowering guidance for the year. This comes only a short time after the company had affirmed guidance in March. Markets are nervous because of the implications that weakness […]
