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Showing posts from September, 2013

The Impact of Philosophy

I had breakfast with my wife Marisol today and as usual got some good ideas and insights from my time with her.  She mentioned to me that her sister Francis had decided to finally pack it in and move from Venezuela, her home country and one that she has always been passionate about.  Francis is a force of nature and is something of a celebrity in Venezuela having served in the late President Chavez’ original cabinet as the Minister of Sports and Culture.  For her to give up on her country is a big deal, but a country that is out of toilet paper and short on drinkable water seems to have met that criterion. 

Clues

Yesterday the Fed surprised the market by announcing that it would leave its policy of printing $85B per month and purchasing with this newly-minted cash a mix of MBS and UST in the open market.  What made this announcement surprising was that most economists had already forecast that the Fed would taper their printing and purchases by at least $10B/month in order to begin to reduce the world’s dependency on the Fed, and in reflection of the much-pronounced economic recovery.

The Recovery?

Last Friday the Labor Department published the August employment report and the headline numbers may have incorrectly caused some to believe that our nation is on a good track.  The official Unemployment number fell from 7.4% to 7.3% and employers added 169,000 jobs, which while not at the desired 200,000 monthly number wasn't too far off.

However, looking a bit more deeply there is great cause for concern in this report.