THE GREAT RECESSION

PICASSO´S VISION

WHAT IF…
What if … David Rosenberg sees 1992-1993 al over again :” This is 1992-1993 all over again when the commercial banks used the steep curve as an opportunity to reliquify their balance sheets and the flip side of that process was a listless and jobless recovery.” What if… John William, proprietor of Shadow Government Statistics notes that every recession in the last four decades has had at least one positive quarter-to-quarter GDP reading, only to be followed by a renew

DOLLAR´S FUTURE
A weak dollar is good news for the world or at list that is what Mr.Market thinks. Behind the global economy’s current revival is a returning appetite for risky investments, such as equities and corporate bonds. Now that stockmarkets and economies have bounced back, dollar weakness has returned, causing a headache for countries with floating exchange rates. Europe’s efforts to contain the dollar’s weakness have had rather less impact. This week the dollar slid to $1.50 to the € !!

SPANISH BANKS: Doubts…
“Spanish banks are failing to recognize the true scale of their losses during the deep slump in Europe’s fifth-largest economy — something that could hamstring the sector’s growth for years” said  Moody’s Investors Service. In a report, the credit-rating firm said Spanish financial institutions weren’t setting aside enough capital to cover surging bad loans. Moody’s said the banks set aside less than half the €108 billion ($160 billion

Where is the Credit: Part II ?
Source: Bud Conrad ( Casey report ) Data published on Oct. 7 confirms what we all know, that the U.S. consumer is not borrowing to spend. In a world where credit has become so important to consumer spending, and where consumer spending drives 70% of GDP, the indicator confirms that the economy is still in slow-growth territory. While overall consumer credit continues slowing and is now declining at a rate of close t

Where is the CREDIT ?
Access to credit in US and other countries is being denied at an accelerating pace. Large, well-capitalized companies have no problem finding credit. Small businesses, on the other hand, have never had a harder time getting a loan. As Meredith Whitney from Meredith Whitney Advisory Group, LLC says ” Since the onset of the credit crisis over two years ago, available credit to small businesses and consumers has contracted by trillions of do