Money Morning Archive August 2009

Are you sick and tired of hearing about the so-called “green shoots” of economic recovery? Globally, analysts have sprouted this phrase repeatedly in the last six months; we’d expect to find them enrolled at advanced classes at their local nurseries.

Banks seem to be increasingly happy to raise their exposure to the property market, but they still aren't keen to give much money to entrepreneurs.

We don't think the rally can continue for much longer. With signals from the "real world" economy mixed at best, it's only a matter of time before the bulls are brought down by the weight of disappointing data.

I’ve been watching the markets and listening to people. Everyone seems very nervous. The fundamentals continue to disappoint despite the market’s run…

The key to understanding the great credit bubble of 1945-2007 is to capture the codependent relationship between China and the United States of America...especially now that that relationship is at odds with one another. Bill Bonner explores, below...

Reserve Bank Governor Tito Mboweni’s parting gift will have put a broad smile on your face if you pay instalments on a house or car. In his final Monetary Policy Committee meeting before vacating the hot seat for incoming Governor, Gill Marcus, Mboweni slashed another 50 basis point from the bank repo rate.

But train passengers should enjoy it while it lasts. Because it increasingly looks as though this is about as much of a whiff of ‘deflation’ as we’re going to see in Britain...

Share prices in London and Wall Street head higher almost daily. Whatever the news, investors put an upbeat spin on it. So the stock market rally since March’s lows has taken on a life of its own.

Richard von Strigl, among others, pointed out in 1923 that there is a big gap between real economics and the vulgar economics that drives policy decisions. Bill Bonner explores those distinctions, below...

Last week, we pondered whether the sentiment fuelling the domestic equity market was misplaced. This week, we’re almost sure it is.

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