Tag Archives: GDP

A Random Walk Through the Minefield

In the last 48 hours, so much news has come out of Europe that has me frankly shaking my head. It is a strange game of brinksmanship they are playing, and it is one we should be paying attention to (as if the brinkmanship played by US politicians over the debt ceiling is not enough). This week we look at what seems to be European leaders taking random walks through the minefield at the very heart of the European Experiment. Continue reading

Posted in Economic News, Fresh Perspectives | Tagged Debt, GDP, Greece, Greek Default, Interest Rates, Ireland, Portugal, Spain, The Euro, The Fed | Leave a comment

Kicking the Can to the End of the Road

I am asked all the time what my biggest worry is, and I quickly answer, the European Sovereign Debt Crisis. Of course, then we have to think about the Japanese Sovereign Debt Crisis, followed by the one in the US; but today we will focus on Europe. The biggest bubble in history is the bubble of government debt. It is a bubble in a world full of pins. It will take a great deal of luck and crisis management to keep it afloat, without wreaking havoc on the financial system and markets of the world. Continue reading

Posted in Economic News, Fresh Perspectives | Tagged Debt, GDP, Greece, Ireland, Unemployment | Leave a comment

Muddle Through, or Crisis?

I think the crucial point will be reached in late 2013. If the bond market sees a serious move to control the deficit, I think they let us “skate.” Then we Muddle Through. But if not, I think we begin to see some real push-back on rates then. Continue reading

Posted in Banking and Finance, Fresh Perspectives, Home Economics | Tagged GDP, Muddle Through, Unemployment | Leave a comment

Underwater Mortgages a Threat to Recovery; Expect No More Than 3% Growth Until Housing Recovers

Given the renewed housing bust what might one expect going forward?

A senior economist for Wells Fargo believes it is unreasonable to expect more than 3% growth going forward as long as housing remains deeply underwater. Continue reading

Posted in Economic News, Fresh Perspectives | Tagged GDP, Home Prices, negative equity | Leave a comment

The Endgame Headwinds

Before we can get to how I think the Endgame of the debt supercycle plays out in the US, we need to quickly survey the current environment, and revisit (at least for long-time readers) a few basic economic themes that I will call the “headwinds” of economic growth. So many leaders in so many countries think that with the right policies they can grow (export) their way out of the problem. As I have written, not everyone can grow their way out of a crisis at the same time. Someone has to buy. Continue reading

Posted in Fresh Perspectives, Home Economics | Tagged Debt, GDP, Inflation | Leave a comment