Thursday, August 29, 2013


U.S. growth numbers this morning were remarkably strong showing an uptick of 2.5%, well above what the pundits were predicting.  No way to prove it of couse but while I am pleased I am also suspicious.  One would have thought that markets would have responded with greater positive motion but the specter of U.S. intervention in Syria cooled a lot of enthusiasm out there.  Today in Parliament, Mr. Cameron reached no better than a stand-off with the loyal opposition and after early-on bellicosity, France has been quite silent as of late.  I was asked by a former European colleague today if the American public was in favor of intervention and my response was an unequivocal "No."  And yet for some reason The Leader feels compelled to press forward, perhaps alone, in what appears to be a truly brainless endeavor; so brainless that the military has been leaking to anyone who will listen that they really want no part of it.  Oh sure, they will follow orders, but...

Anyway, the markets were very quiet today with the only thing of interest being will it be the Larry or Janet back and forth.  I wish to hell someone would put and end to this thing by nominating Stanley Fisher who just left as the head of the Central Bank of Israel and who taught Summers all he knows about economics...but probably not all Stanley knows.  The markets would turn handsprings.    But, no chance and while all of this is going on the emerging markets, particularly India and Brazil continue to implode with nary a word coming from either the Fed or Treasury which in the latter case is probably a good thing.  My same European bud asked if I really thought this emerging markets thing was a real, current crisis and my response was, "only for the emerging markets" which I think is a pretty accurate statement.  But once again, if Syria goes up the flu and hostilities spread--which would be an awful thing in it self--there is little out there to stop the funds flow that will follow from putting a terrible hurt on that sector of the world's finances.

And so we wait in a calm that always precedes the long Labor Day weekend Over Here but this year it is an eerie calm.  Pretty square books out there I suspect.

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