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  1. “Heavy Govt spending is single-handedly powering up the econ there

    Posted by: more4less at July 31, 2009 11:50 AM”

    Yep – real underlying issues over there at the mo.

    “one of the proposals that china has made is that they use their USDs to buy US stocks.

    Posted by: daveinbedstuy at July 31, 2009 11:50 AM”

    Very clear that the only thing they can do with their dollars is buy dollar-denominated assets. Good for equities, bad for the dollar.

  2. m4l, what if some egogenous force drove up the stock market???? That would make consumer confidence rise with the wealth effect.

    We speak weekly with Roger Kubaryck (ex-fed guy & economist at unicredit). he is hearing that there are high level talks between the us & china and one of the proposals that china has made is that they use their USDs to buy US stocks. Both Hong Kong and China have precedent in buying their markets.

    They could buy a lot when avg daily dollar value here is $50B -65B

    I gotta head out for a lunch now.

  3. Chicken, that consumption weakness is what I fear most. if consumption is weak, just find it hard to see how rev can stabilize or grow and there’s a limit to how much cost can be cut to boost earnings.

    in speaking with relatives & friends back in the Motherland, they’re telling me consumption is weak over there too. Heavy Govt spending is single-handedly powering up the econ there

  4. “where are the usual finance experts? Need some expert opinion on the GDP report today. I’m getting a mixed interpretation on it.

    DIBS?
    Chicken?
    Anyone?

    Posted by: more4less at July 31, 2009 11:30 AM”

    Something for everyone M4L – Bulls say better than expected (-1% v -1.5% consensus), Bears will say prior period revised down quite significantly (-6.4% v previous reported -5.5%).

    I say it’s a made up number that has too high a noise-to-signal ratio to be particularly meaningful.

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