"It is this failure of political will both in the EU and US which is starting to make the contemporary economic scene resemble that of the 1930s. " The Eurozone and the US are heading into a bad economic decade, argues John Lanchester (wiki). [more inside]
V, Double dip (W) or L recession? Things look bad for the EURO is the skyscraper index is right. We have heard recently about problems in the Eurozone. Is the worst over or is the worst still to come? The skyscraper index indicates: Trouble ahead. [more inside]
Is Jay-Z signaling a recession? There is something quite alarming on the recently released “Blue Magic” music video ... it wasn’t sex, drugs, violence or explicit language that shocked my conscience. It was the Euros. The Jay-Z video flashed large stacks of $500 Euros. When I start seeing rap stars flashing euros instead of U.S. dollars, I know our economy is in trouble.
On Tuesday, the Federal Reserve cut interest rates by 0.5%. Wall Street aggressively demanded the cut to stop the sub-prime mortgage contagion from triggering a credit crisis among large US and foreign investment banks and the collapse of their over-leveraged hedge funds, which ultimately threatened to drag the US economy into recession. The market rallied this week in response to the Fed's move. But there is no free lunch. [more inside]