Irwin Kellner says that the weakening economy has brought with it falling prices, which may not necessarily be a bad thing. The Economist magazine’s weekly all-items commodity index priced in dollars has fallen by about 30% since the beginning of 2011. Compared with this time last year, the magazine’s measure of all items prices is…
Here is what I am reading: BRICs Priced for Economic Meltdown (Bloomberg) The Euro Endangers German Economy (Spiegel Online) Summertime news: Stocks are solid (MarketWatch) Dealing with a double whammy in China: Andy Xie (MarketWatch) The Smartest Man is a Firedancer (Byron Wien) JIM O’NEILL: The World Should Copy Everything South Korea Does Except For…
This is via Rex Nutting of MarketWatch. It’s the weak economy that’s feeding our uncertainty. The American economy is losing momentum because it’s running out of fuel. Our economic fuel is income, and it’s in short supply. Without income, people can’t spend. If people don’t spend, businesses won’t expand. And if businesses won’t expand, incomes…