"Recovery!" WHAT Recovery??

[stilicho]

More random nutters:

Top economists: The second Great Depression has arrived

Here's a new nut for you: Charles Nenner.

http://articles.moneycentral.msn.com/Investing/MutualFunds/could-the-dow-fall-to-1000.aspx

"Charles Nenner believes the stock market, like the economy and indeed the universe, is predetermined. In a phone conversation from Israel, Nenner outlined a rather bleak future: Stocks should rise to an important top sometime in September, before a two-year fall."

...and...

"Cycle work is on the fringes of what is already seen by many as a pseudoscience."

Here's a video of him just making stuff up on the fly:

http://www.bloomberg.com/video/62419728/

Here's his own site where he appears as always after a hard night sleeping on a park bench somewhere:

http://www.charlesnenner.com/

From his Wall Street Journal interview in June:

"Since Nenner has energy, wheat and gold prices going back as far as the 13th century, he specializes in commodities..."

Huh? He's making predictions for the stock market in 2012 (cue scary music) based on wheat prices when Innocent III was the pope, the Albigensians were stamped out in southern France, Philip Augustus remounted his horse and held the field at Bouvines, and the Mongols contemplated a full scale invasion of Europe.

 

[Corsair 115]

For what it's worth, Statistics Canada reported that the Canadian economy in the second quarter of 2010 grew at an annualized rate of 2.0%, well below the market expectations of 3.0%. In the first quarter the economy had grown at an annualized rate of 5.8%.

 

[stilicho]

For what it's worth, Statistics Canada reported that the Canadian economy in the second quarter of 2010 grew at an annualized rate of 2.0%, well below the market expectations of 3.0%. In the first quarter the economy had grown at an annualized rate of 5.8%.

The problem is the balance of trade. It started nosediving (predictably) with the havoc down in the US but appeared to be recovering in the first quarter. I just wish the USD would stabilise somewhere. That seems to be the biggest issue as they're playing chicken with the Chinese. So it really comes down to the undervalued yuan, which acts like a subsidy for Chinese industry and commerce.

 

[JihadJane]

Funny cartoon:

Stocks Are Flying, And The Dollar's Getting Crushed, Which Can Only Mean One Thing...

 

[dudalb]

Jane, I get the feeling you really want a total economic collapse, so we will all be forced back to subsistence level farming, which seems to be your solution for everything.

 

[Corsair 115]

The problem is the balance of trade. It started nosediving (predictably) with the havoc down in the US but appeared to be recovering in the first quarter.

To me it says Canada needs to do more to diversify its trading. While it's understandable why we have roughly 80% of our trade eggs in the American basket, I'm not sure that's a good thing, especially in times like this when the U.S. is having such trouble righting its listing economy.

 

[timhau]

We can help you. We'll buy the blueprints to your hockey goalscorer factory.

 

[kookbreaker]

Funny cartoon:

Stocks Are Flying, And The Dollar's Getting Crushed, Which Can Only Mean One Thing...

So the dollar loses some value over a period of what, a few hours - and that means it is being 'crushed', so that means - umm, well it isn't exactly clear.

What a stupid thing. What the hell is 'businessinsider'?

 

[stilicho]

To me it says Canada needs to do more to diversify its trading. While it's understandable why we have roughly 80% of our trade eggs in the American basket, I'm not sure that's a good thing, especially in times like this when the U.S. is having such trouble righting its listing economy.

That means we have to open up foreign investment to non-American sources. That's already happening with heavy Chinese investment in the tar sands, for example.

But we're not experiencing the same tremors the US is and that means there's something other than the balance of trade at play. I think it's a combination of a more stable banking sector (for which we pay a premium) and the blind dumb luck of having been able to successfully trim the fat in the public sector in the mid-1990s. That was possible because a large surplus hit at the same time the economy was accelerating. So, really, it's Mulroney's GST bonus baby that saved the day.

The much-maligned Mulroney, I might add.

 

[stilicho]

Funny cartoon:

Stocks Are Flying, And The Dollar's Getting Crushed, Which Can Only Mean One Thing...

Yes, it means the Chinese yuan is still undervalued.