Succinct summation of week’s events:

Positives

1) Oct payrolls surprise big to the upside
2) Fed lights another fire under asset prices but are we really wealthier as a result?
3) Emerging markets continue to rally as investors seek non $ assets
4) Oct auto sales rise to best since Sept ’08 ex clunkers
5) ISM services and mfr’g indices both above forecasts
6) RBA and RBI raise rates to cool inflation pressures
7) Fed to allow healthy banks pay dividends.

Negatives

1) Huge printing of money has turned our central bank into a 3rd world one
2) Asset priced induced wealth effect is an illusion if a debased currency and higher inflation is the side effect
3) Deeper the Fed gets, the more difficult it will be to reverse
4) Commodity inflation as measured by CRB index rises to 2 year high
5) Ireland, Portugal and Greece financial concerns continue to grow
6) German Sept factory orders fall sharply
7) Sept Pending Home Sales unexpectedly fall.

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

18 Responses to “Succinct Summation of Week’s Events (11/5)”

  1. Ted Kavadas says:

    RE: “Asset priced induced wealth effect is an illusion if a debased currency and higher inflation is the side effect”

    Amen to that…IMHO the U.S. Dollar is vulnerable to a substantial decline – which would be highly damaging on a net basis. This vulnerability is seen in the U.S. Dollar in weak price action, weak technicals, and a rather large “triangle” chart pattern. Of course, strong commodity price action also confirms such a vulnerability.

    For those interested in seeing a few U.S. Dollar charts illustrating the trends and triangle, my recent post on the subject:

    http://economicgreenfield.blogspot.com/2010/10/market-overview-part-ii-us-dollar.html

  2. Negative #4–we’re headed back to 2008. That ended well, as I recall.

    Negative #6–Germany is a huge exporter. Their factories got cranked up because of the Greek/Portugal, et al, crisis driving down the Euro, making German exports cheap. Now the situation with the Euro has more or less reversed course. So too will their economic performance.

  3. cognos says:

    Hey douche — how come “negatives” #1,2,3 are just your lame, bloviated opinion?

    Not at all “week events” or “negatives”.

    Been wrong for a while now Peter, huh? How’s that UST short working?

  4. call me ahab says:

    speaking of douches we have cognos- the biggest douche bag of all– probably a girly man and salad tosser too

    regarding #3 especially- the Fed can’t extricate itself at all- unless there is substantial recovery- barring that- any whiff of the Fed having second thoughts on its “all in” policy

    whooooosh . . .

  5. call me ahab says:

    . . .and following up on my last post-

    Why US Stocks Don’t Like Good Economic News Now

    all the numbers presently are based on nothing but free money for speculation-

    the Fed- what’s their job again?

  6. Pocket QQ says:

    “who needs actions when you got words?”

    http://www.youtube.com/watch?v=-Fz8wxG6tHo

  7. JimRino says:

    The Democrat’s lost, let the Hiring Begin!
    This country is Rigged like a Banana Republic.

  8. JimRino says:

    Interesting correlation in the book “The Great Crash of 1929″, by Galbraith.

    The 1929, Reagan recession, and today, were all preceded by Tax Cut’s For the Rich. Which just created an Overvalued Market.

  9. VennData says:

    Guy Adami wonders aloud whether when the Fed was responsible for employment and when the Fed started regulation banks… in the same segment…

    http://www.cnbc.com/id/15840232/?video=1633683859&play=1

    It’s called the “dual mandate” and yes, they supervised banks under Reagan/Greenspan too.

  10. rktbrkr says:

    Deeper the Fed gets, the more difficult it will be to reverse

    Uncle Ben is riding the tiger

  11. Lariat1 says:

    The hell with all of this, UPS dropped off Keith Richards book at my house today. I am a happy person.

  12. fountainthink says:

    Too many educated Americans and so-called economists believe that prosperity is a goal which can be reached through government industrial policy, i.e. central planning.

  13. beaufou says:

    cognos,
    You were saying yesterday or the day before that QE2 meant $0.
    Did you ask your neighbors and family how much this would cost them?

  14. oldtimer says:

    Remember the first rule of Monopoly. The winner of the game is not the one who acquires the most wealth. It is the one who makes everyone else bankrupt.

  15. beaufou says:

    It’s all nice common man, but I don’t remember which arm of the government screwed the world financial system, was it the private sector government?

  16. Greg0658 says:

    I’ve been package’g pics .. the other half been playing this in the background .. its very interesting .. don’t think it’s been presented to you’all before .. then maybe I missed it …

    :-) these journalists spent $1000 to buy a toxic asset for the education back in January2010 – then followed it’s real progress :-| … its a series so pick the start point :-(
    http://www.thisamericanlife.org/radio-archives/episode/418/toxie

  17. Greg0658 says:

    the link I gave above is sorta like pointing you at TBP to find Bailout Nation

    Episode1 is in the machine press > … then you shuffle
    http://www.npr.org/blogs/money/2010/03/podcast_we_bought_a_toxic_asse.html

    here is the box set (currently)
    http://www.npr.org/blogs/money/

    sorry for the double post boss

    ps – I remember here @TBP eons ago satelite pictures of streetscapes – somewhere in that box set they mention pictures of subdivision developments that are going bust – & that post came to mind