the President of the Dallas Fed on Inflation and central bank independence….
I din’t think anyone realized the size of unfunded liabilities of health care and pensions totalled $99 trillion, conventional wisdom had it at approximately more than half that…this is a disturbing revelation. It is refreshung to be presented with the frank verbiage from the Fed branches, referring also to the San Francisco Fed Economic letter I sent out last week.
OK, we’ve added another state in the last little while (we’re running out)…The Crisis isn’t California’s alone….According to a study 47 (yes 47) states face a budget gap and there aren’t a lot of good solutions….Not to add fuel to the fire, but at last count about 80% of municipalities were in the same boat. Los Angeles recently declared a state of financial emergency…NY can’t be too far behind as their transit system just got a $2+ billion bail out in the past few weeks…
50% of employers suspend graduate recruitment in the UK….
David Rosenberg – Breakfast with Dave
I attach the latest from Rosie the unflappable…
Hot Points
- massive easing by the Fed has not stopped credit from contracting indicating that the money multiplier is breaking down
- NY Times data indicates Euro banks face $1 trillion in new Eastern European loan losses
- inflows into Gold ETFs has soared 6 fold over the past year to 455.2 tons
- retailers to face an imminent major margin squeeze
- have to break above 4.10% to declare end of bull run in 10 yr Treasuries
- CDN $ overdone, $0.80-0.85 is the range
- S&P 600-840 From here, more downside than upside
- deflation
- deflation
- deflation
