Around the Globe 06.08.2013

European Union (EU) clash with IMF over ‘mistakes’ in Greece bailout | World | News | Daily Express.

Greek GDP Per Capita

Greece has reached GDP levels last seen on the eve of its accession to the Eurozone.  Heckuva a job, troika, heckuva of a job.  Now that Greece has made the euro round trip having given back all of its GDP gains from joining the common currency, do you think its citizens and leaders will finally figure out that they should leave the euro?

For Some Investors, Federal Reserve Can Start Tapering NOW.

Fed QE versus SP500

Allan Greenspan actually believes that a Fed QE exit will lead to even higher stock prices.  Of course, Mr. Greenspan also believed that his policies did not create stock market and housing bubbles.  Since a picture says a 1000 words, we will not present a counterargument to the latest drivel to emanate from Mr. Greenspan and a couple of sell-side twits.  Just look at the chart.

We’re Rich Again! So Why Don’t We Feel It?.

wealth-inequality-usa-07

First of all, we are not rich and never were.  The top 10% in this country owns 98% of the bonds and 81% of the stocks.  Fed money printing has raised the prices of these assets resulting in a boom for the top 10%.  These same policies have also caused stagnation in the labor market where the 90% derives the lion’s share of its worth.  QE is just the umpteenth iteration of trickle down economics. How much of Uncle Ben’s money has trickled down to you?

China Export Growth Plummets Amid Fake-Shipment Crackdown – Bloomberg.

China’s export growth slumps – MarketWatch.

China trade data underscores growth worries | Reuters.

china-exports

China is preparing to enter its first recession in years, and this should be an interesting test for the new government.  While the official numbers hold up, the proxy numbers reveal an economy entering stall speed.  Falling demand for raw materials, electricity and transportation are more telling than whatever garbage the government releases to the mainstream media.

Home Loan Rates Near 4% Send Buyers Scurrying: Mortgages – Bloomberg.

Mortgage Applications 06.2013

When will the mainstream media call an end to the housing recovery that never began? Plunging mortgage applications do not bode well for future sales, which are still running at rates from the late 90’s.

Pound Surges Most in 3 Years on Signs U.K. Economy Strengthening – Bloomberg.

GBPUSD 06.07.2013

The pound has been quite volatile since the beginning of the year.  While it has declined precipitously since scaling the heights of $1.62 in December, its recent rally has recaptured half of its losses.   Once Mark Carney gets his hand on the Old Lady of Threadneedle’s printing press, this trend should reverse itself.

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