Do not confuse the economy with the stock market.
Acts, Not Actors: Immediately after pledging `to work cooperatively to solve the current economic crisis, at least 17 of the G-20 rushed home to propagate protectionist barriers.
Rose Is A Rose... Energy Secretary Steven Chu is advocating "adjusting trade duties" to protect US manufacturing, in response to China's warning against the imposition of tariffs on carbon-intensive products.
Gotcha! After the Fed said it would buy $300 billion in Treasuries, the dollar fell 2.69%. This is (1) a depreciation of the dollar. (2) Called inflating the currency. (3) Quantitative Easing in action. (4) Making paper worthless by printing on it. (5) All of the above.
Story Time: The government says it is giving billions and billions to the banks in the hopes that they'll begin lending again. But the Federal Reserve reports that bank lending is growing (up 13% from a year ago) and at record low interest rates. So tell me again why we're giving the money away.
Cash Back: Representative Betty Sutton, D-Detroit, wants the government to pay you $3,000 to $8,000 to recycle your car.
Clown Car: Along with foreign central banks, foreign big banks, US big banks, and assorted US financial outfits, now hedge funds are crowding in to get cash from the government via the AIG conduit. How'd they all ever fit in there?
Buy the Rumor: The stock market loves the increase in mortgage applications, ignoring that 75% of all applications are for re-financings, not actual sales.
Führer Knows Best: Republican State Senator Mike Bennett wants folks to pass a drug test before they can get their
handout unemployment check. He says he has " nothing against the people who were using the drugs," he just wants those receiving unemployment to be ready to work at a moment's notice.
Here's the Plan: The GOP plans to fund Norm Coleman's challenges to Al Franken's 225-vote victory in the Minnesota senatorial election all the way to the Supreme Court. So Coleman will, in the end, win by 1 vote.
Revisionism: The World Bank, which had earlier lowered its projection from 9.2% to 7.5% has now cut its guess for China's 2009 GDP growth to 6.5%.
Backwards: For all the excitement, you'd think supply creates demand, at least in the housing industry. "Build it and they will come" was awfully weak as a movie plot, don't think it'll bring a happy ending to the current downturn.
Majority Rule: The eagerly awaited release of Depression 2009 has been called off for lack of interest. It's unclear if the product has been canceled, or will be rolled out at a later date.
Clueless: Wall Street firms are investigating ways to get around federal compensation caps even though they took gobs of government handouts. Don't they realize that right now there's no where to hide and the natives are restless?
Alfred E. Gazprom's exports to non-FSR countries fell 40% from January to mid-March, and its natural gas production is continuing to fall - haven dropped over 20% in the first 15 days of the month compared to last year. I don't get my gas from Russia, but if I did I might worry, just a bit.