Friday, May 02, 2008

US economy shows resilience

The US economy grew by 0.6% in the first quarter of 2008. It was not in recession.

At Intrade the probability that the US has fallen into recession has fallen to 25%. (When I last looked it was 33%, look under Financial/Economic Numbers).

Update: Even Paul Krugman is cautiously optimistic. The worst of the financial crisis seems to be over.


Anonymous said...

The calm before the storm?


Anonymous said...

Anonymous said...

Now assuming Antal E Fekete's anlysis is correct, then presumably the market is waking up to funny money and OTOH is increasingly reluctant to take on more debt at Bernanke determined rates and are demanding an ever higher risk premium beyond the soothing utterings of Central bankers and OTOH are recognising the upside value in real commodities, like Chinese SWFs growing interest in Australian commodity companies. In the absence of commodity money, the next best thing is commodities themselves, given the monetary inflation in the pipeline now.

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