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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Tuesday, November 24, 2009

Economic News Roundup

In its second reading of third-quarter gross domestic product, the Commerce Department said the economy grew at a 2.8 percent annual rate, rather than the 3.5 percent pace it estimated last month.
My Spin, considering job losses are between 300K and 500K per week for the last year, and GDP according to current US Government estimates is 2.8%, and US national debt was increased by about 10% in ONE YEAR, this is not good. But if we ignore massive government debt, 2.8% is respectable all things considered, but hardly considered a strong recovery.

MUMBAI: The US dollar is expected to remain the carry trade currency of choice in the near term and the unwinding of this carry trade is unlikely to be as severe as that of the yen carry trade seen in the early 2008, say currency experts.

My Spin: When Japan became the carry trade of choice for the world, they experienced a 20 year recession. Their stock market and real estate has not recovered in 20 years! Let's hope the US dollar does not become the defacto carry trade currency for the next 1 year, much less 10+ years. And disregard people who say a weak currency is good for America. Ask that person why don't they put their savings into Zimbabwe currency or Mexican Peso?

FDIC deficit $8.2 billion in Q3
MySpin: The FDIC is BANKRUPT. The FDIC is floating the idea that banks pay their FDIC premium for the next 3 years upfront to get cash. Once that money runs out, what next? Ask banks to pay a premium for next 10 years? I'll tell ya whats next, the taxpayer will print money to pay itself. If that day comes, Gold is definitely where the action will be.

U.S. consumers seem slightly more confident about the economic outlook in November, but their appraisal of short-term prospects remains decidedly glum, according to data released Tuesday by the Conference Board.
My Spin: There is hope yet, the public gets that no real improvement has been made, except a paper shuffle. Now if only people would demand to enforce the law and stop making private debt into public debt to pay for billions in bonuses.

Japan Exports Fall Least in a Year on Global Stimulus

My Spin: Read the reality: Shipments abroad slid 23.2 percent from a year earlier, compared with a 30.6 percent decline in September, the Finance Ministry said today in Tokyo. Get that? A decrease of 23% is great as compared to 30% decline?!? My Rose colored glasses aren't as bright as other peoples.

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