Comments on: Notes From Underground: Putting Significant Stories In Perspective

By: yra

yra — Mon, 27 Aug 2012 14:23:27 +0000

Kevin–great post and a good insight on GUIZHOU—and on Ben’s view –it is time to take a breath and drink deep of the Portfolio BaLANCE CHANNEL

By: Kevin

Kevin — Mon, 27 Aug 2012 12:34:21 +0000

From the Telegraph piece “Guizhou, one of China’s poorest provinces, has said it will spend 3 trillion yuan on eco-tourism and creating a series of national parks.” I suspect it is the infrastructure spending plans that are a little “lite”. I particularly liked Guizhou’s announcement, because it is so obviously implausable that it shows up the whole process of province after province announcing massive spending plans for what it is.

Confirmation of this comes from the A Share index breaking to a movement low today.

Finally, while the market watches the economic data, I think Ben watches the market. So the S&P500 within spitting distance of a 4 year high and corporates borrowing at pretty much the lowest yields in 40 years is perhaps not the ideal climate to launch QE3. Before Ben takes a big policy risk I think he needs markets to have started pricing in a recession.

Yra thank you for an inciteful and entertaining blog!

By: yra harris

yra harris — Mon, 27 Aug 2012 09:39:53 +0000

ALGO–thanks.The Telegraph piece was a little “lite” and that is why I raised the issue of why no other sources were citing it but I wanted to alert the readers to a possible impact.

By: algotr8der

algotr8der — Mon, 27 Aug 2012 03:48:06 +0000

Thanks Yra for the detailed note on the upcoming events. Always insightful.

I just read the Telegraph story – It seems to me the headline is very misleading, possibly purposely designed to get the *text* mining algos to rip risk assets higher. I don’t see anything material in this story.

By: kevinwaspi

kevinwaspi — Mon, 27 Aug 2012 02:13:17 +0000

Between the ZIRP common among the developed central banks, and now more stimulus, one chant comes to mind (again): “Let the Games Begin” Remember when the economy was something that government measured, instead of tried to be?
Kevin