Economic Tid Bits
Posted By thestatedtruth.com on December 16, 2010
Neal Soss at Credit Suisse:
We have rising prices in gasoline and food. That is worldwide. It is also the warning sign of the worst-case “nightmare scenario.â€Â It as an “eruption of headline inflation (food and gasoline) with no accompanying pick-up in wages or real growth.â€Â
David R. Kotok of Cumberland Advisors:
Through the December 10 data, foreigners have not been buyers of U.S. Treasury and agency debt. The home mortgage rate in the U.S. has backed up to nearly 5%. U.S. bond markets exhibit signs of panic selling. The Fed’s policy of U.S. Treasury purchases appears to be defeated by the markets. That suggests a possible economic weakening is coming in the spring and another downturn leg in housing is possible. Spain is now paying a real interest rate of 5% to borrow, according to its latest auction. The Eurozone issues are not resolved.
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