Category Archives: Economy

Two fundamental flaws remain in Europe’s bailout plans for Greece

Trading in financial markets on Friday afternoon had two main influences. The first was the US employment/unemployment situation which I discussed on Friday and the digestion of more bad news on this front. The second was the fact that the troika … Read More

Posted in Economy, Investing | 6 Comments

The fact that US jobless claims are rising must be most worrying for the ninety-niners

This week has seen yet more economic data which confirms a slowdown in the US economy. What we do not yet know is whether this will turn out to be a reduction in economic growth or a return to recession. … Read More

Posted in Economy, Investing | 8 Comments

Karl Marx must be turning in his grave at current events in Greece,Ireland and Hungary

After discussing the Greek situation on Monday it looked as though this week might bring a spell where Greece’s financial situation might move into the background. Whilst there are always contrary views Euro zone officials and politicians seemed to be … Read More

Posted in Economy, Investing | 13 Comments

UK banks buy 91% of new gilts in six months to April

The government has been able to continue to fund the large budget deficit at low interest rates in recent months because banks and building societies have stepped up gilt purchases, compensating for a reduction in demand from non-bank domestic investors … Read More

Posted in Economy | 3 Comments

Commodities: Is the super-cycle coming to an end?

Commodities have had a lengthy bull run, but the recent billion-pound flotation of commodities trader Glencore coincided with some weakness in commodities markets.  Is the much-heralded commodities super-cycle coming to an end? Here is the story so far: ……………………………………………………………………………………………………… 1. … Read More

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As housing markets are often a key to economic recovery both the UK and US have problems

For some time now I have been analysing and chronicling the travails and problems of the US housing market. Why? Well a recovery phase in an economy is often and one may even say usually driven by a recovery in … Read More

Posted in Economy, Investing | 34 Comments

It looks like the Greek can is about to be kicked a little further into the future

Whilst the UK and US were enjoying an extra bank holiday yesterday there was ever more news on Greece with Euro zone leaders again doing their negotiating in public and displaying that they do not agree on very much. Perhaps … Read More

Posted in Economy, Investing | 15 Comments

My critique of Adam Posen’s opinion piece in the Financial Times

Towards the end of last week Adam Posen who is a member of the UK’s Monetary Policy Committee wrote an opinion piece in the Financial Times. I wish to take the opportunity to offer a critique of his views and … Read More

Posted in Economy, Investing | 11 Comments

UK consumers defy MPC / consensus gloom

The EU Commission UK consumer confidence index recovered strongly in May, supporting the suggestion of an improving consumer outlook in a post a month ago and a follow-up earlier this week. The index, which summarises consumer views on the economy, … Read More

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For America it is the trend in unemployment claims that is more important than recorded economic growth

Over the past five weeks or so I have been recording economic numbers which have been showing something of a slowdown for the US economy. This is a concern on several counts. Firstly she remains the worlds largest economy and … Read More

Posted in Economy, Investing | 3 Comments