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Economics:
There were lots of weak US economic numbers released today. Industrial production in April fell 0.7%, capacity utilization dropped to 79.7%, the Philly Fed index contracted again with another negative reading of 15.6, the New York Empire manufacturing index fell to negative 3 while the prices paid component posted a large increase to another record […]
Market Recap:
Lots of bad news out on the US financials today as Fannie Mae posts another big loss of $2 billion, UBS lost $10.9 billion (and is cutting 5,500 jobs), Wachovia increased its first quarter loss by 80% and Countrywide puts a stop to most home equity loan withdrawals in Las Vegas. As you would […]
Should North American investors be investing based on an economic environment that is recessionary or inflationary?
As mentioned previously, the US economy seems to be in a bull market as bad news (such as housing or employment stats) results in rising stock markets. If the market responds to bad news by pushing up the stock […]
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 […]
