Financial Bubbles | timiacono.com

GDPNow Now Higher for Q2

Not that a growth rate of 2.1 percent for the U.S. economy in the second quarter is anything to write home about (particularly after registering another negative result for the first quarter), but things appear to be looking up a bit here mid-way through 2015 per the latest update of the Atlanta Fed’s GDP Now real time economic forecast tool.

It was yesterday’s biggest monthly gain in consumer spending since 2009 that pushed GDPNow over the 2 percent mark for the first time this year. Recall that GDPNow nailed first quarter growth (or the lack thereof) earlier this year when most analysts were expecting a growth rate of somewhere around two percent. It should be interesting to see how this turns out late next month when the advance estimate for Q2 is reported.

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A Greater Depression in Greece

This morning’s headlines read “Tsipras slams creditors…”, “Tsipras flies to Brussels…”, and “Tsipras faces domestic revolt…” as the Greek debt tragedy continues to play out in the latest attempt to avert a “Graccident” resulting from a “Grexit”.

Fortunately for anyone who has already grown tired of Greek-related contractions, none is needed when combining the words “Greece” with “Great Depression”, which is what the Hellenic people are now enduring as illustrated below in this Bloomberg story.

Yes, the economic data from 80 years ago is sketchy, but, as detailed above, it’s actually been much worse in Greece than in the 1930s U.S., as hard as that might be to imagine.

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Ron Paul vs. the Fed

It’s kind of weird seeing Ron Paul doing commercials for Stansberry Research that appear to be running at high volume on selected cable networks while his son is running for president, presently attracting a boatload of criticism for a flat tax plan.

In the interview below, the elder Paul found time to talk to CNBC about the Fed.

According to the accompanying CNBC story, he offers good news for investors:

I think the Fed is very efficient and the Plunge Protection Team is very efficient and they have gained a competence in the market, that the Fed won’t allow this market to drop

Circular Bailouts in Greece

The lack of pension cuts in the latest Greek bailout proposal appears to be the leading cause for optimism now fading for another emergency meeting in Brussels now underway.

A BBC story provides the graphic below that should serve as a timely reminder of exactly what the current crisis amounts to – unlocking bailout funds that Greece will use to meet the repayment schedule for prior bailout funding.

The Guardian provides this live feed of the goings on at the eurogroup meeting which just ended after just one hour (not a good sign). IMF Director Christine Lagarde looked gloomy and German FinMin Wolfgang Schauble looked even gloomier.

The stock market will likely continue to rally anyway…

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