Stocks are “soaring” today on news that the Bank of Japan cut its policy rate again from .10 (virtually zero) to 0 in another desperate effort to goose Japanese growth. If for 20 years you don't succeed….keep ramping up your government debt seems to be the play.
Meanwhile the US is signalling a similar path with ideas of Quantitative Easing 2 in the wings . QE 1 was ineffective in reviving the economy, so keep doing more of what hasn't worked, seems to be the plan.
Here is a good discussion of current themes with David Rosenberg on Bloomberg: US Economy may shrink in fourth quarter.
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In tough times Economists are like rock stars. rosenbergs everywhere. I agree with most of what he says and he's bang on about auto production. Look at toyota here in Ontarionthey had overtime shifts at the start of the year and now the overtime has almost stopped.
Did I hear that second guy correctly. 4th quarter 3% growth. What's that guy smoking or is he just there to goose ratings?
I think Buffet has an early dementia seeing his comment this morning: “Business coming back strong”.
A week ago or two he said the US is still in recession.
A week before that he said the US will avoid recession.
Go figure.
Gold is literally running off the 14 days RSI chart.
US 10 years treasury is at 2.46% and falling.
S/P 500 is at 1150 and rising.
In my humble opinion, something has to give.
Sooner the better!