Ruined by Good Luck


	Ruined by Good Luck

JICWyllie

6-30-2009 5:20 AM

73 views

tags:

1-bailouts, 1-deflation, 1-policy, 2-consequences, 2-record, 2-risks, 3-forecast, 4-us

JICWyllie says:

The graph looks a bit like Al Gore's climate warming hockey stick. Interpretation: We are a witnessing phase change.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/e08838ae-d305-45de-b472-4805351573ea/C751EEDA-998C-4CC3-9084-0285CE2EC432/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://dailyreckoning.com/ruined-by-good-luck/" href="http://dailyreckoning.com/ruined-by-good-luck/" style="font-size: 11px;">dailyreckoning.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dailyreckoning.com/ruined-by-good-luck/">inasmuch as the world economy is now in a deflationary correction, the risk of inflation seems very, very remote. So, for the time being, the United States seems to be able to borrow almost unlimited amounts of money at very low interest rates.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dailyreckoning.com/ruined-by-good-luck/"> look at this chart that appeared in <EM>The Wall Street Journal</EM>.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dailyreckoning.com/ruined-by-good-luck/"><div align="center"><img src="http://content8.clipmarks.com/blog_cache/dailyreckoning.com/img/250B259A-A9DD-4BB5-BFB1-4A4DB13B648F" alt="php7TGnc0" /></div></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dailyreckoning.com/ruined-by-good-luck/"><EM>Bloomberg</EM> reports that consumer spending is rising.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dailyreckoning.com/ruined-by-good-luck/"><EM>The Wall Street Journal</EM>, however, reports that savings rates are going up.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dailyreckoning.com/ruined-by-good-luck/"><P><EM>The Richebächer Letter’s</EM> Rob Parenteau is scratching his head at this contradiction in trends. “Oddly,” he writes to his subscribers, “along with flat consumer spending, the gross personal saving rate has surged to nearly 7%, yet the unemployment rate has kept climbing. How is that combination possible? Specifically, where is the household sector getting the income growth to both increase saving and stabilize spending levels when job cuts remain alarmingly high?”</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/C751EEDA-998C-4CC3-9084-0285CE2EC432/blog/" title="blog or email this clip"><img src="http://content9.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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