{"id":189900,"date":"2010-02-01T20:50:00","date_gmt":"2010-02-02T01:50:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/02\/01\/economics-update-97\/"},"modified":"2010-02-01T20:50:00","modified_gmt":"2010-02-02T01:50:00","slug":"economics-update-97","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/02\/01\/economics-update-97\/","title":{"rendered":"Economics Update"},"content":{"rendered":"<p>Well, we had mixed signals, with <a href=\"http:\/\/www.cnbc.com\/\/id\/35181171\">factory activity rising faster than expected and construction spending falling faster than expected<\/a>.<\/p>\n<p>As to what you follow, I&#8217;ll go with <a href=\"http:\/\/www.calculatedriskblog.com\/2010\/02\/december-pce-and-saving-rate.html?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29\">disposable personal income and personal consumption expenditures<\/a>, where spending went up less than income, increasing the savings rate, meaning that the consumer is still well into the &#8220;paradox of thrift&#8221;, and <a href=\"http:\/\/www.ritholtz.com\/blog\/2010\/02\/u-s-personal-income-vs-spending-unsustainable-gap\/?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+TheBigPicture+%28The+Big+Picture%29\">as The Big Picture observes<\/a>, most of the increase in personal income is from government stimulus spending, but Obama has decided to go all 1937 on the budget.  (Separate post for the budget)<\/p>\n<p>Meanwhile in central bank\/bond finance land, the Obama&#8217;s budget, along with the industrial growth reading <a href=\"http:\/\/money.cnn.com\/2010\/02\/01\/markets\/bondcenter\/treasurys\/index.htm\">pushed bond prices down<\/a>, and yields up.<\/p>\n<p>Meanwhile, in Oz, the <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=aMKA8h6FpmLg\">Reserve Bank of Australia kept its benchmark rate at 3.75%<\/a>, it had been expected to raise the rate to 4%, and so its currency took a hit.<\/p>\n<p>Meanwhile in currency and energy, the ISM&#8217;s index of national factory activity drove both <a href=\"http:\/\/money.cnn.com\/2010\/02\/01\/markets\/oil\/\">oil<\/a> and <a href=\"http:\/\/money.cnn.com\/2010\/02\/01\/markets\/dollar\/index.htm\">the dollar<\/a> up.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Well, we had mixed signals, with factory activity rising faster than expected and construction spending falling faster than expected. As to what you follow, I&#8217;ll go with disposable personal income and personal consumption expenditures, where spending went up less than income, increasing the savings rate, meaning that the consumer is still well into the &#8220;paradox &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1080,973,1135,1004,1089,985],"tags":[],"class_list":["post-189900","post","type-post","status-publish","format-standard","hentry","category-currency","category-economy","category-energy","category-finance","category-recession","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/189900"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=189900"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/189900\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=189900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=189900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=189900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}