The thing is, theres a much simpler explanation. During the period from early September to early November, we enjoyed a period of global stability and improving economic data, and thus there was little desire to hold dollars. Since then weve been buffeted with headllines out of Europe and Asia, and so the risk off trade is back, and dollars are back in style.Whats so hard to figure out? via CHART OF THE DAY: Time For You To Admit
From Time Magazine: If America’s economic landscape seems suddenly alien and hostile to many citizens, there is good reason: they have never seen anything like it. Nothing in memory has prepared consumers for such turbulent, epochal change, the sort of upheaval that happens once in 50 years. That may explain why so many voter polls, taken as the economy shudders toward the November election, reveal such ragged emotional edges, so much fear and misgiving.
Carter vs. Obama in December of First Year In December of their first year in office, according to Gallup: Approve:Carter: 57%Obama: 49%Disapprove:Carter: 27%Obama: 46%Approve - Disapprove Spread:Carter: +30%Obama: +3% via mjperry.blogspot.com BERK: Regime uncertainty is running rampant and slowing down
This is an excerpt from a NY Magazine article that describes James Grant's optimism on the US economy - noteworthy since Grant is one of the great pessimists on Wall Street in its history. Grant is optimistic for two reasons: 1. Cyclical bounce back - the US economy has usually bounced back as sharply as it fell. In the early eighties the economy was in terrible shape with double-digit unemployment like we have today. And then the economy staged a steep recovery - against
