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One Minute Macro Update

Tyler Durden's picture


U.S.: Markets up again this morning. Wisconsin’s state assembly passed the highly debated legislation that weakens state workers’ unions and the bill will now head on to the state senate. In a meeting with outside economic advisors, President Obama acknowledged that current rates of unemployment will continue in the near term. St. Louis Fed President James Bullard told reporters yesterday that he supports a more flexible quantitative easing program that would change the amount of bond buying based on the health of the economy. Bullard’s comments were not limited to QE2, and said a third easing program is a possibility. Today will see the release of 4Q GDP, estimated at 3.3% v 3.2% prior.

Europe: The SOVXWE and periphery quiet and slightly tighter ahead of today’s Irish election results. U.K. GDP shrank by 0.6% QoQ in the fourth quarter, larger than the expected -0.5%. Construction and investment led the contraction and adds on to the 0.5% decrease in the previous quarter. Government spending rose 0.7% v -0.4%E while private consumption declined 0.1% v -0.2%E. Russia’s central bank raised its main rates up 25bps to mitigate inflation, which is viewed by the country to be one of its largest economic challenges. The bank also raised reserve requirements for a second consecutive month. Euro zone M3 rose 1.5% YoY in January, missing market expectations of +2.1%.

Asia: India’s finance ministry announced that the country will need to make efforts to slow inflation and the economy is projected to grow by 9.25% in the next year. The announcement comes ahead of next week’s release of the budget statement, and inflation is the main concern for the rebounding  economy.

From Brian Yelvington of Knight Capital


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Fri, 02/25/2011 - 08:48 | Link to Comment 99er
Fri, 02/25/2011 - 08:52 | Link to Comment johnQpublic
johnQpublic's picture

President Obama acknowledged that current rates of unemployment will continue until they get much worse

Fri, 02/25/2011 - 09:03 | Link to Comment Henry Chinaski
Henry Chinaski's picture

Just yesterday the President assured small businesses that they do not need to be concerned about inflation.  Sec Geithner also pointed out that TPB are capable of managing the oil price spike resulting from unrest in the mid east.  Don't fret.  All is well.

Fri, 02/25/2011 - 09:12 | Link to Comment johnQpublic
johnQpublic's picture


my daddy taught me to recognize sarcasm

if they handle the present oil price spike as well as they handled the permanent oil price spike from katrina we have nothing to worry about

my small business only lost 50% of our customers over that one(auto shop)

road traffic dramatically decreased....funny thing is cars dont break as much when no ones driving them...who'd a thunk it

but i doubt that the tripling in cost of my 'product' was due to inflation or high cost of oil

but i closed it anyway...prolly because property taxes went up 250%...but thats not inflation

guess i was just a quitter

Fri, 02/25/2011 - 09:15 | Link to Comment SilverIsKing
SilverIsKing's picture

You shoulda hung in there cause the economy is getting better.  Obama said so.

Fri, 02/25/2011 - 09:26 | Link to Comment johnQpublic
johnQpublic's picture

too late....folded it nov '07

i could see the writing on the wall

had a signed deal selling it 2 weeks before close(me closing it) and they had financing


finally got the deal closed  nov '10

i quit counting how many times their financing got screwed

they ended up paying cash

it was a clusterfuck to say the least

these folks had a multitude of propertys,rentals,businesses etc

as property values dropped shit had to get restructured repeatedly...i even took a 20% price drop incrementally over that time period

but at least it is gone from my hair(which is really freakin gray now)

Fri, 02/25/2011 - 10:30 | Link to Comment Rogerwilco
Rogerwilco's picture

Welcome to the club. We found out yesterday why we lost a 20+ year customer that represented around 7% of our annual sales. They're buying a Chinese knock-off of our product (used for military training LOL) and the buyer hinted at pricing so ridiculously low there is no way we can compete.

Thanks Timmy And Ben, your little pissing contest with the Chinese is working so well.

Fri, 02/25/2011 - 11:47 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

If only there were a way to increase the price of shipping so that Chinese slave labor was effectively expensive.

Fri, 02/25/2011 - 12:18 | Link to Comment Rogerwilco
Rogerwilco's picture

The buyer hinted they are paying half of what we charged. So even with a 40% import tariff, the Chinese would still undercut us by 10%! This is a niche product with no consumer uses or volume potential. All I can figure is the Chinese have decided to go after small American manufacturers in a war of attrition. The bastards at the big corporations only care about their margins and they will buy the lowest price, even if that means their kids in college will have no jobs after graduation.

Obama and that smarmy douche Immelt put a smiley face on treason, and the "markets" go higher.

Fri, 02/25/2011 - 09:12 | Link to Comment SilverIsKing
SilverIsKing's picture

Did Geithner say anything about managing the price of silver?

Fri, 02/25/2011 - 09:18 | Link to Comment johnQpublic
johnQpublic's picture


silver 176,980/oz.?

Fri, 02/25/2011 - 08:53 | Link to Comment Oh regional Indian
Oh regional Indian's picture

When were the Missing/runaway d's collared? Never saw that story, here or anywhere.

So, is it over? Interesting to see where that goes.

And Indian finaice min (IMF sellouts and BIS boot-lickers) have been saying that every year AND misstating the true NUMBers anyways.



Fri, 02/25/2011 - 09:02 | Link to Comment Bubbles...bubbl...
Bubbles...bubbles everywhere's picture

I think they changed the rules on the go. Seems like they took a clue from Wall street.

Fri, 02/25/2011 - 09:07 | Link to Comment Oh regional Indian
Oh regional Indian's picture

You took that line out of my finger-tips. So they did change the rules eh?

Trip out.


Fri, 02/25/2011 - 10:16 | Link to Comment snowball777
snowball777's picture

It still has to pass the state Senate, which could prove to be a more contentious battle.

Fourteen Democratic senators have fled to neighboring Illinois to prevent a quorum from voting on the issue, and they remained absent early Friday.

Fri, 02/25/2011 - 08:57 | Link to Comment pauldia
pauldia's picture

 Libya's yesterdays news. All under control. Hey, we didn't even have to send Jimmy Carter to resuce anyone. Sorry Jimmy, can't blame the Jews, but you can have lunch with Helen Thomas.

US military advisers in Cyrenaica. Qaddafi's loses his air force

Fri, 02/25/2011 - 08:59 | Link to Comment Henry Chinaski
Henry Chinaski's picture

Fridays are usually interesting.  The results of Friday Prayers are released from Mosques all over the mid east.  FDIC surprise visits in the afternoon.  TGIF!

Fri, 02/25/2011 - 09:14 | Link to Comment johnQpublic
johnQpublic's picture

whats TGIF mean?

all i get is Tim Geithner Is Fucked

Fri, 02/25/2011 - 09:31 | Link to Comment Wynn
Wynn's picture

thank god it's friday

Fri, 02/25/2011 - 10:48 | Link to Comment snowball777
snowball777's picture

Today Government Issues Fiat (in deference to the FDIC making depositors whole)

Fri, 02/25/2011 - 10:32 | Link to Comment snowball777
snowball777's picture

Are you trying to imply some kind of correlation based on "O you who believe, you shall not take usury, compounded over and over. Observe God, that you may succeed." ?

Fri, 02/25/2011 - 09:01 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

I know the Unions and the State Employees do not like the plan but it will save many Jobs.  Without the cuts many of those State Employees would have lost their Jobs.  I know most of them thought it would not be THEIR Job but now they will not be faced with that possibility. 

Better in my opinion to cut a little from many than lower the amount employed.

Fri, 02/25/2011 - 12:04 | Link to Comment spanish inquisition
spanish inquisition's picture

From my reading, the unions understood and offered to take cuts in pay and pension to save jobs. They were not spoken to, because that was not the issue.  The issue in Wisconsin is to eliminate collective bargaining. 

Overall, have unions abused their strength in the past? Yes. But they are necessary in protecting workers rights. Has management abused their power in the past? Yes. Though they could argue that they were only supporting the rights of a 12 year old to work for pennies a day.

Is the WI pension system underfunded? Yes. Politicians (Democrats and Republicans)ransacked it and now it's the fault of unions. I expect the report was written my an investment bank.

Fri, 02/25/2011 - 17:07 | Link to Comment jmc8888
jmc8888's picture

No need to cut (besides bogus wars, bailouts, the ultra retarded part of defense spending, etc)

We need Glass-Steagall (which would allow the gov' hamilton did, to take up bonds AFTER haircuts, to be taken up in federal debt.  Of course our debt would be MUCH smaller than it is now, since we would have wiped away the fraud that makes up a huge chunk of our deficit)

Given these realities, why cut? Because we can't figure out the real answer, so lets just pretend we are by needlessly cutting people wages, collective bargaining rights, an

The budget deficit, and need to balance the budget is a CON.  We didn't spend recklessly, we were defrauded WHOLLY over a large timefram. When most of the debt is fraud, and the causes of the depression also hurt Wisconsin and everyone, are what's keeping states

These people accepting cuts, have been the first to be screwed for many years, and now they are taking another shot to the face.  How about making the ones that caused this mess take a FIRST shot in 40 years, instead of outsourcing the shots to the middle class which is what has 100 percent happened the last 40 years.

No need to print, no need for austerity, we need Glass-Steagall to wipe out the fraudulent debt that only the idiots forget about and then choose one of two wrong paths on, instead of the real 3rd path.

It's Best in my opinion to do what is necessary to get to the crux of the problem, instead of kicking that can down the road, and destroying the middle class for this sophistry. 

The wisconsin gov Walker hasn't saved anything, he's about to destroy Wisconsin, needlessly.  Of course taking away ones rights to bargain AFTER concessions were agreed to makes sense. (no, which just shows he's a whore) Walker is a dumbass, fascist, and should be immediately impeached.  After all, when the snort and suck koch fascist brothers are on speed dial, what else but fascism and sophistry should one expect?

What do Walker, Christie, Obama and many others have in common? They're fascist bankster whores who need to be impeached if America has ANY chance of surviving.  Or else you can let them 'save america', by unamerican actions that destroy america.


Fri, 02/25/2011 - 09:25 | Link to Comment spanish inquisition
spanish inquisition's picture

Thank goodness Wisconsin got that out of the way. Now the legislators are able to concentrate on cutting their pay, pension and health care benefits to show solidarity with the people!

Our two weapons are fear and surprise...and ruthless efficiency...

Fri, 02/25/2011 - 09:55 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

more qe?no inflation can be seen? high unemployment is ok?oil is ok and under control?

hopium = delirium, soon to be insanium.

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