The Mess That Greenspan Made - Part 40

Now that the U.S. team has been eliminated from the World Cup, we ‘Mericans can focus on what we really do best – inflating asset bubbles – and that effort should be bolstered by what is shaping up to be a big number in the nonfarm payrolls data due out from the Labor Department on Thursday, just prior to the nation celebrating its 238th birthday on Friday.

From these two reports at Gallup come the charts below indicating all systems are go.

Of course, it doesn’t hurt that payroll processor ADP reported earlier today that the private sector added 281,000 jobs last month, the biggest job creation total since November 2012.

This should be much more fun than watching soccer…

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Wednesday Morning Links

Are stocks on fire or just overheating? – CNBC
Dow, S&P 500 at record highs on manufacturing data – xinhuanet
Hong Kong Stocks Close at Year’s High on Factory Data – Businesweek
Global investors pare risky bond bets, brace for sell-off – Reuters
Five Questions Ahead of the ECB’s July Meeting – WSJ
World’s ATM Moves to Frankfurt as Fed Slows Cash – Bloomberg
Rate Hikes: What Can History Tell Us that the Fed Won’t? – Cyniconomics
Iraq may become ‘new Ukraine’ due to US interference – Voice of Russia
Iraq conflict put oil companies on ‘knife’s edge’ – Financial Post
China’s Hurdle to Fast Action on Climate Change – NY Times
Australia emerging as new casino hotspot – Channel News Asia
10 things rich people know that you don’t – MarketWatch
Christmas in July: TV week of holiday programming – AP

Global stocks higher on US, China growth – AP
Another financial meltdown on the horizon? – The Hill
Market’s correction-free run tops 1,000 days – USA Today
Gas prices too high? They could be much worse – CNBC
Treasuries Drop as U.S. Companies Top Jobs Forecast – Bloomberg
Gold near 3-month high on fund inflows ahead of U.S. data – Reuters
Will gold be an effective hedge in the next  financial crisis? – arabian money
Gold bullion imports in India hit 13-month high – Resource Investor
Indian gold import duty could be cut but perhaps only to 8% – Mineweb
Gold appetite at 4½-year low in June – CNBC
The Golden Tail? – Barron’s

July 4th gas prices highest since 2008 thanks to Iraq – MarketWatch
We must end this addiction to debt as the engine of growth – Telegraph
Debt Makes You Dumb, Part 2: Borrowing Just To Get By – Dollar Collapse
Britain’s manufacturing activities grow at seven-month high – xinhuanet
Sarkozy Charged With Influence Peddling After Questioning – Bloomberg
Real estate prices decline for a second consecutive month – China Daily
London House Prices Surge the Most Since 1987 – Bloomberg
The Slow Down in the House Price Indexes – Calculated Risk
The Re-Explosion of U.S. House Prices Is Over – Businessweek
Yellen and Lagarde take stock of lessons from crises past – WSJ
The financial instability argument for raising rates – mainly macro
Stability or Sadomonetarism? – Krugman, NY Times


The Institute for Supply Management reported that the U.S. manufacturing sector continued to expand at a healthy pace last month as their purchasing managers index was little changed, down slightly from 55.4 in May to 55.3 in June. Recall that, in this index, readings above and below 50 indicate expansion and contraction, respectively.

The key new orders component improved from 56.9 in May to 58.9 in June, production fell from 61.0 to 60.0 (still indicating robust growth), and employment was unchanged at 52.8. A full 15 of the 18 industries tracked by ISM reported growth last month.

Pricing pressure eased somewhat as this component fell from 60.0 to 58.0, backlog orders fell from 52.5 to 48.0 (indicating contraction), and inventories were unchanged at 53.0.

Obviously, the stock market likes this news quite a bit.

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Tuesday Morning Links

Markets, Sprinkled With Fairy Dust – Bloomberg
4 signs the stock market is overheating – CNN/Money
Fed has grown complacent on credit market risk – FT
Stocks post 6th straight quarterly gain – USA Today
Ceasefire over, Ukraine forces attack rebel positions – Reuters
No Good Iraq Options for Obama as Russia, Iran Jump In – Bloomberg
The awful reason tens of thousands of children are seeking refuge – Vox
“Holy $340 Billion In Quarter-End Window Dressing, Batman” – Zero Hedge
Security Detail for Fed Chairwoman Irks Neighbors – WSJ
The race to stop Las Vegas from running dry – Telegraph
What Will America Look Like in 2024? – The Atlantic
Here’s how much pricier July 4th will be… – CNBC
The business cycle, RIP? – Washington Post

European shares gain, Asia lackluster – AP
What stock market’s first half tells us about second half – MarketWatch
Can U.S.-Listed ETF Inflows Hit New Record in 2014? – Barron’s
What Kind of Investor Are You? – A Wealth of Common Sense
USDA Report Unleashes Massacre in the Grain markets – Trader Dan
‘Why I am backing cash and gold until stock markets fall’ – Telegraph
Gold holds near 3-month high, underpinned by soft dollar – Reuters
Gold Gain Obscures Fund Outflow as Investors Buy Equities – Bloomberg
SGE Withdrawals 36 MT in Week 25, YTD 920 MT – In Gold We Trust
Five-month China HK gold imports flat, but trending down – Mineweb
Copper price closes at 16-week high – Australian

The Great Recession’s long-term damage – voxeu
Americans Aren’t Buying Obama’s Improved Economy – Fiscal Times
Tyler Cowen’s Scary Narrative About War And Economic Growth – Forbes
China manufacturing growth picks up in June – Channel News Asia
India spends nearly half the tax it collects to pay off debt – Quartz
UK manufacturing activity growing at fastest rate ‘for a generation’ – Telegraph
‘HGTV effect’ pushes home renovation spending to record $63-billion – Financial Post
Three reasons why the US housing market won’t be back to normal anytime soon – Quartz
California Housing And The Bubble At Hand – Contra Corner
Fed’s Williams sees no rate hike until after mid-2015 – Reuters
Monetary policy: Dead economies blow no bubbles – Economist
The World’s Central Banker – Project Syndicate

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