United States durable goods orders came down 14.4% (vs 11.8% expected) to $213 billion in March, the weakest number since 2014.
Core durable goods orders declined by 0.2 % in March.
Orders fall, inventories rise. The decline is simply staggering.
All posts by Daniel Lacalle
Banks Will Not Bail Out The Economy
These days, we hear a lot that banks were the problem in the 2008 crisis and now they are the part of the solution.
Banking was not the main problem of the 2008 crisis, but one of the symptoms that indicated a more serious disease, the excess risk taken by public and private economic agents after massive interest rate cuts and direct incentives to take more debt coming from legislation as well as local and supranational regulation. Lehman Brothers was not a cause, it was a consequence of years of legislation and monetary policies that encouraged risk-taking.
Continue reading Banks Will Not Bail Out The EconomyMassive Stimulus May Boost Inflation The Wrong Way: Stagflation
All over the world governments and central banks are addressing the pandemic crisis with three main sets of measures:
- Massive liquidity injections and rate cuts to support markets and credit.
- Unprecedented fiscal programs aimed at providing loans and grants for the real economy.
- Large public spending programs, fundamentally in current spending and relief measures.
The U.S. Labour Market Can Heal Quickly, the European, Less So (Epoch Times)
This article was published at The Epoch Times here.
The jobless claims figures of the past two weeks have been unprecedented and alarming. However, knowing that the data will continue to be concerning, we need to analyze how quickly the economy can can heal and go back to the previous path of record job creation.
Continue reading The U.S. Labour Market Can Heal Quickly, the European, Less So (Epoch Times)