26 October 2009

Economics Update

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Chicago Fed Index Chart Pr0n H/t Calculated Risk

Your Moment of Zen
We have some dueling indices today, with the ATA Truck Tonnage Index falling, and the Chicago Fed reporting that its Midwest Manufacturing Index rose in September to levels approaching where they were prior to the recession.

Overseas, we have the Bank of Israel leaving its benchmark rate at .75%, German consumer confidence falling, and the South Korean economy growing at its fastest pace in 7 years, so it's more mixed signals.

We are seeing an increased risk appetite among investors, which has driven treasuries lower, and pushed their yields up, though a statement by an official in the Chinese central bank that China should diversify its currency holdings, may have been a factor too.

In real estate, home prices in California fell by 7.3% from a year ago, largely on increased foreclosure sales.

In energy, oil fell again, and the dollar rose from this year's lows, which would indicate a reduction in risk appetite, which is kind of counter to the results with the US treasuries above.

Finally, watch the video, it's funny, in an, "I don't know whether to laugh or cry," way, and one note to the non-Brits, "Freddy" is Sir Fred Goodwin of the £ multimillion pension.


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