Credit Writedowns

News links for 26 Jun 2014

The last revision for Q1 2014 released today at 8:30AM was the largest downward revision since second and third revisions began in 1976. Instead of contracting at an annualized 1.0% pace, the economy contracted at a 2.9% pace. That is a…

After a number of years of stall speed growth, the US economy seems to be breaking out, even as the Fed has turned toward a tightening bias. As this cycle continues, we should not underestimate the ability of the US economy to continue…

U.S. consumer confidence rises in June | Reuters Calculated Risk: New Home Sales increase sharply to 504,000 Annual Rate in May Calculated Risk: Case-Shiller: Comp 20 House Prices increased 10.8% year-over-year in April Could Iraq Be…

Today’s post is about technology and the dynamics of market saturation. My contention over the past couple of years has been that the mobile market in developed economies was becoming saturated to the point that the economics of…

Happy Monday. I will be back to normal posting on Tuesday. Here are today's links. Markit Flash PMI, June 2014 - Business Insider Housing Market Falters Amid Rising Prices, Lower-Paying Jobs - Bloomberg BBC News - Did Hyman Minsky find…

Despite my concern over releveraging and increased household debt in the face of low wage growth, I believe the cyclical recovery in the US will remain intact for some time to come. The latest jobless claims numbers give a further boost to…

News links for 19 Jun 2014

News links for 17 Jun 2014

The economic and business paradigm in place in the United States is predicated on a secular increase in household debt that I believe will not last through another cyclical downturn without serious deleveraging. The reason we saw…