Mish's Global Economic Trend Analysis |
- "No Limit" to Economic Madness
- Monthly Macro Update November: Mish Video With Gordon Long
- Another Obama Clean Energy Fiasco, Potentially Involving Largest Bankruptcy in Spanish History; Appeal of Clean Energy
| "No Limit" to Economic Madness Posted: 05 Dec 2015 06:58 PM PST Last week the markets were upset because ECB president Mario Draghi did not do enough to combat deflation. Draghi Recap
That Japanesque set of actions seems like one hell of a package but the market expected far more. I commented on the package in Euro Surges, Bonds Sink as ECB's Rate Cut to -0.3% and Pledge of More QE Until March 2017 "or Beyond" Not Dovish Enough. Offending Markets Heaven forbid an central banker offends the market with an undesired announcement. Not upsetting the markets is the only "tool" central bankers have left. So Mario Draghi followed up with a new pledge 'No limit' to ECB Action to Hit Targets. The ECB pledged on Thursday to continue its €60bn-a-month bond buying quantitative easing plan until March 2017 and cut a key interest rate to a fresh record low of minus 0.3 per cent. But the measures disappointed investors that have come to rely on Mr Draghi to smash expectations, with a broad market sell-off after the ECB failed to deliver deeper cuts and an increase in the pace of QE.ZeroHedge has an interesting take on The Inside Story Why The ECB Decided "The Markets Needed To Be Disappointed" And How It All Fell Apart. Here is an amusing video of a Draghi lie corrected on the spot. The key moment is right at the end when Draghi corrects an obvious lie that the audience laughs at. Rest assured there is no limit to Draghi's madness. Mike Mish Shedlock |
| Monthly Macro Update November: Mish Video With Gordon Long Posted: 05 Dec 2015 05:52 PM PST Every month, I will be getting together with Gordon Long to produce a video discussion of video macro events of the past month. This is the second video we have done. Prior to that, I had been with Long on three or four occasions, but not on any kind of schedule. This month we discusses the EU refugee crisis, another Japanese recession, the US subprime auto sector, the likelihood of a US recession, and other topics. It's a 30 Minute video, which we call Mish's Monthly Macro Update. The link provides a text synopsis and some charts as well as as a video play link. Mike "Mish" Shedlock |
| Posted: 05 Dec 2015 11:39 AM PST On the clean energy front, team Obama keeps plugging away with failure after failure. This go around involves a clean energy company in Spain that increasingly appears as if it will become the largest bankruptcy in Spanish history. Sudden Insolvency Please consider Abengoa: Another Story Of Sudden Insolvency. Throughout this current year, 99 companies across the world have defaulted, the second highest figure in the decade after the 2009 crisis, according to S&P. Spanish firm Abengoa could be added to the list.Appeal of Clean Energy I am all in favor of clean energy. I just have one mandatory requirement: no government involvement or subsidies. Governments have a tendency to back losers as team Obama has shown. Worse yet, backing losers takes money away directly or indirectly from other companies, possibly with better technologies. If a project requires subsidies to be viable, then it's not viable, period. If venture capitalists want to pour money into such projects, I am all in favor of that too. But none of these projects should be at taxpayer expense. Finally, without governments sloshing money around, the free market on its own accord will sort out the winners and losers. Government waste and backing of loser companies and loser technologies just adds to the delays. Mike "Mish" Shedlock |
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