Tuesday, July 10, 2012

Things are bad all over.

Japan Current-Account Surplus Shrinks 63% as Machine Orders Drop - Bloomberg
Machinery orders, an indicator of capital spending, fell 14.8 percent in May from the previous month, the Cabinet Office said, the biggest drop since 2001
Pre-Fukushima, pre-earthquake, pre-financial-crisis badness.

Greek economy heading for 7 percent tumble | Reuters
Greece's crippled economy will fall a steeper-than-expected 6.9 percent this year, a think-tank formerly run by the new finance minister said on Monday, a tumble that will hamper efforts to cut the deficit and bring yet more pain to Greeks.

Such a decline would mean Greece's economy has shrink by a fifth since the end of 2007.
And I don't think they have any plan for growing the economy, aside from government spending. With money they don't have. (As I've said before, more government spending is NOT equal to encouraging economic growth. How about a look at regulations and taxes stopping businesses?)

Spain on the brink as borrowing costs soar to unaffordable levels - International - Scotsman.com
The interest rate, or yield, on the country’s ten-year bonds rose 16 basis points to 7.03 per cent, a level that market-watchers consider is unaffordable for a country to raise money on the bond markets in the long term and the level at which Greece, Ireland and Portugal all sought an international bailout. Stocks on Madrid’s benchmark index fell 1.5 per cent.
7 percent seems to the magic number, once yield hits 7 percent markets decide that the governments can't afford it. (Stupid really, since they can't afford half that much.)

And in case you aren't paying attention... 'Zombie' US economy scares sharemarket investors | The Australian
"Some are describing the US economy as the zombie economy - not quite dead, but not really alive either," said Cameron Peacock, a market analyst at IG Markets
Gotta love the zombie reference.

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