Comments on: AM Reading

By: Bruce N Tennessee

Bruce N Tennessee — Tue, 30 Jun 2009 13:52:48 +0000

http://www.nytimes.com/2009/06/30/business/30auto.html?_r=1&ref=business

G.M. Exits Venture With Toyota

““The product was never the point at this plant,” Mr. Womack said. “It was a way for Toyota to figure out how to apply its system in the United States and for G.M. to try to figure out how Toyota was doing the things it was doing.”

….I would say one company accomplished its goals, and one did not…..

By: Steve Barry

Steve Barry — Tue, 30 Jun 2009 13:39:37 +0000

@Mike:

yes, they did try to spin it positive. You can’t spin these really. In fact, if by some miracle, it actually veered up off its downward path, it would just be a delay of the inevitable, making it more painful in the future.

By: willid3

willid3 — Tue, 30 Jun 2009 13:15:55 +0000

wage deflation is here
http://www.businessinsider.com/david-rosenberg-wage-deflation-is-here-2009-6

not that i am not convinced its not always been here. its just more observable now. fits in with wage destruction and job destruction themes of the last decade or so

By: Mike in Nola

Mike in Nola — Tue, 30 Jun 2009 13:15:51 +0000

Steve: I bet it’s green shoots on CNBC.

By: Steve Barry

Steve Barry — Tue, 30 Jun 2009 13:13:51 +0000

Case Shiller 20 city comp was 139.18…at top end of my margin of error…still on same trajectory.

By: pjl

pjl — Tue, 30 Jun 2009 12:46:46 +0000

Solid run-down of the economic data ahead this week. Also makes a funny statement about the use of the phrase “green shoots.”

By: Mike in Nola

Mike in Nola — Tue, 30 Jun 2009 12:28:43 +0000

Steve: There may be some noise in CS. E.G. ICSC same store sales were up. Not that I think it’s lasting.

I have a Google News Alert set up for Hugh Hendry (also for Albert Edwards). He’s always good for an entertaining interview and some very deeply thought out financial insights. Can you imagine him on CNBC US? He’s not polite like a lot of people. Would chew up Dennis and Larry and spit them out.

http://www.cnbc.com/id/31652780

By: Steve Barry

Steve Barry — Tue, 30 Jun 2009 12:12:15 +0000

Case Shiller is out this morning…I have never done this, but I will use the chart extrapolation I did to predict the 20 city composite…my projection is 138, plus or minus one. The trajectory is very steady and housing still must fall at least 20% more from current levels.

By: Mike in Nola

Mike in Nola — Tue, 30 Jun 2009 11:57:45 +0000

A to suggested reading, Japan seems to be suffering from Green-Shootitis also. The fundmentally long term bad news is ignored because of noise in consumer spending readings.

http://www.bloomberg.com/apps/news?pid=20601101&sid=a90dAL94wEos

The other day, headlines trumpeted Japan’s industial production rising more than it had in fifty years. The fine print happened to mention that it was still 30% below May 2008 and you later found out that these rises only brought factory utilization up to about 50%.

Nevertheless, stocks continure to rise.

On the home front, s Dennis being groomed to make Larry look intelligent?
http://zerohedge.blogspot.com/2009/06/dennis-kneale-great-recession-is-over.html

By: SINGER

SINGER — Tue, 30 Jun 2009 11:48:15 +0000

The Bank of International Settlements (BIS) Annual Report for 2009 was released yesterday.

http://www.bis.org/publ/arpdf/ar2009e.htm

See bottom of p. 118 re: “rescues”; Warning, the phrase “green shoots” was not used in this report…