Dealing with the Global Financial Crisis: Focus Europe

Where are the Super Heroes? Written by Macrotides In our article in March we discussed the low level of volatility in the stock market, and wondered if the perception that the European debt crisis was contained was correct. We didn’t think so, since the primary factors driving the crisis would continue to deteriorate in 2012. …

Out of the Garden of Europe and into the World Economy

by Macrotides Monetary policy is a bit like watering a garden. Its nourishment is intended to foster growth and jobs, and when in full bloom, a rising standard of living for the majority of people in society. A functioning spigot (central bank) and nozzle at the end of the hose (banking system) are needed for …

Is Decoupling Possible in a Global Economy?

by Macrotides An improvement in U.S. economic data in the fourth quarter has convinced many investment strategists that the U.S. will continue to grow 2% to 3% in 2012, absent a Lehman Brothers type of crisis in Europe.  After all, U.S. GDP growth likely exceeded 3% in the fourth quarter, while Europe was slipping into …

September 2011 Global Macro Picture

The tightening of monetary policy over the last year by China, India, and Brazil will cause their domestic economies to slow. Coupled with the slowdown in developed countries, global growth is set to slow for the rest of 2011 and early 2012. The European debt crisis is going to get worse, and it also will have a negative effect on global growth.