What a week! It started off with equity markets in a swoon. The Irish debt package was announced and it went down like a lead balloon. Panic set in. If Euro 85bn wasn't enough, how much was enough? Who's next: Portugal, then Spain, even Belgium? Is there enough money in the world to bail them all out? On the flipside was this steady undertone of good economic data. Early in the week the Dallas Fed survey came out. It looked good. The employment component looked excellent. Who cares about the Dallas Fed survey? Sure, Texas is big, but it's not everything. But Dallas was backed up by Philly Fed and Chicago PMI, along with the national ISM. In all cases the employment components are looking very solid. So it was Euro contagion vs accelerating growth. Then Europe decided to remind us that 'whatever it takes', in place since the credit crunch crunced, is still the mantra. If it comes to that one day the European Central Bank will just put up a couple of trillion and fund the Eurozone bail-out vehicle (EFSF). Europe is not gonna let that grand project go down the drain, no matter what the sceptics say. It's deeply rooted, born out the desire to put generations of devastating wars into the past. The markets rebounded with zeal and ended the week on a strong note. The QSL is from KCBI, Dallas, a Christian short-wave station, heard in Joburg in the 1980s.
Saturday 4 December 2010
Dallas Fed to the rescue (who?)
What a week! It started off with equity markets in a swoon. The Irish debt package was announced and it went down like a lead balloon. Panic set in. If Euro 85bn wasn't enough, how much was enough? Who's next: Portugal, then Spain, even Belgium? Is there enough money in the world to bail them all out? On the flipside was this steady undertone of good economic data. Early in the week the Dallas Fed survey came out. It looked good. The employment component looked excellent. Who cares about the Dallas Fed survey? Sure, Texas is big, but it's not everything. But Dallas was backed up by Philly Fed and Chicago PMI, along with the national ISM. In all cases the employment components are looking very solid. So it was Euro contagion vs accelerating growth. Then Europe decided to remind us that 'whatever it takes', in place since the credit crunch crunced, is still the mantra. If it comes to that one day the European Central Bank will just put up a couple of trillion and fund the Eurozone bail-out vehicle (EFSF). Europe is not gonna let that grand project go down the drain, no matter what the sceptics say. It's deeply rooted, born out the desire to put generations of devastating wars into the past. The markets rebounded with zeal and ended the week on a strong note. The QSL is from KCBI, Dallas, a Christian short-wave station, heard in Joburg in the 1980s.
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