2013

Last week I wrote about the asset-price fuelled boom fading. Back then the biggest worry for the market was Japan and Abenomics. However, in reality the biggest concern is emerging markets. I gave you some reasons why last week. Here are a…

The real challenges for China, if you believe in the social capital constraint, are not about maintaining high rates of growth in the short term but rather of raising the levels of social capital in China. This is much more difficult and…

The Federal Reserve's Open Market Committee met today. As expected, the Fed Funds rate stayed at zero percent. Most Fed watchers, however, wanted more clarity on the Fed's quantitative easing timetable, which the Fed laid out clearly. But…

News links for 19 Jun 2013

The long-term trend in capacity utilization in the US shows a secular decline. After each major recession over the past 50 years, capacity utilization peaked at a lower level than after the previous recession. So far in the post-Great…

In the wake of the NSA spying scandal, I have been moving my data away from large US vendors and increasing my computer security. Both of these issues needed to be addressed but the NSA spying scandal has made them relevant for me - and I…

Spain and Italy reported today that the share of bad loans have continued to rise. There is nothing to suggest that this is the peak. In fact, further deterioration is likely.

News links for 18 Jun 2013

In spite of the divergence in the chart, the "loans create deposits" axiom still stands - deposits are still created through bank credit. Two key developments explain much of this divergence without violating these principles.

News links for 14 Jun 2013