by Rebecca “Go long whatever Chinese consumers buy and go short Chinese capital spending (construction) plays. Consistently, go long tech/short material stocks.” That is the first sentence of a BCA Research report’s executive summary on China equity strategy (link not available). Rather than a global equity strategy, I’d like to put this into an economic […]

Marshall Auerback is a Roosevelt Institute Senior Fellow and Braintruster at the New Deal 2.0. By Marshall Auerback To paraphrase Shakespeare, things are indeed rotten in the State of Denmark (and Germany, France, Italy, Greece, Spain, Portugal, and almost everywhere else in the euro zone). An entire continent appears determined to commit collective hara kiri, […]

O.K., Greece is now “high yield”, “junk”, “below investment grade”, at least according to S&P. What I mean by that is S&P now rates Greece’s foreign and local currency sovereign debt at the BB+ level (with a negative outlook), below the sometimes-coveted investment grade status, BBB- is the minimum. Why did S&P feel the need […]

Yesterday I attended the 6th Annual Goldman Sachs Emerging Markets conference in New York. My takeaway from the conference overall was that the risk-on sentiment that is driving massive inflows into EM funds is still very much present. Going forward, the conference participants generally see emerging markets as “different” from those ten years ago, and […]

Morning AB link: Marshall Auerback on BNN: (click on picture for video link; it takes a bit to load)

Roosevelt Institute Senior Fellow Marshall Auerback and Braintruster at the New Deal 2.0 explores the possibility, and what it means if deficit hysteria continues unchecked: A recent poll by Douglas Schoen and Patrick Caddell suggests that swing voters in the US, who are key to the fate of the Democratic Party, care most about three […]

I remain very skeptical about the sustainability of the recovery, as the labor market is in shambles and nominal wage growth is unlikely to facilitate “healthy” deleveraging – please see this recent post “Reducing household financial leverage: the easy way and the hard way”. I digress; because you can’t fight the data. And for now, […]

Barkley Rosser at Econospeak takes aim at immigration and worker ratios: Robert Reich says so, “Why More Immigrants Are An Answer to the Coming Boomer Entitlement Mess“, which is also linked to by Mark Thoma. He has been on the Social Security Advisory board and has heard all the tales of coming Demographic Doom due […]

by cactus The 1920s Depression: Glenn Beck, Thomas Woods, and “Benefits” of Cutting Taxes to Combat a Recession, Part 1 So I get an e-mail from reader Dean Moriarty, stating: Yesterday, I found myself in the sad position of inadvertantly listening to the Glenn Beck show. He was talking to some caller about how American […]

Brad DeLong and Mark Thoma posit that a falling US public deficit is bad news – they are right! Deficit hysteria is now mainstream thinking, while the more appropriate hysteria should be “jobs hysteria”. How in the world is nominal income growth expected to finance a drop in consumer debt leverage if the government supports […]