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V-SHAPED OR W-SHAPED?

21 August 2009 by TPC 3 Comments

Andy Xie has some excellent thoughts on the likelihood of a v-shaped recovery:

A growing liquidity bubble that ignores structural facts is the basis for today’s happy talk about a comeback for the global economy.The United States is beginning to report data showing strong economic growth. Analysts are upgrading their outlooks for the U.S. economy, which is expected to grow at an annualized pace of 3 to 4 percent. And even before the U.S. revival emerged in the third quarter, China’s data pointed toward a quick rebound in the second quarter.

Is the global economy staging a V-shaped bounce? The buoyant financial market had been expecting a rebound for months. Was the market right?


Read the full story here.

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3 Comments »

  • Jeff said:

    I’ll believe we are improving once these charts look better:
    http://economicedge.blogspot.com/2009/08/week-in-charts-buckle-heck-up.html

    Where’s the foundation from which we are building the new economy? It looks like a house of cards – more like a skyscraper of cards.

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    # 21 August 2009 at 6:45 PM
  • MS said:

    TPC,

    I know Andy Xie for a long time. He is the worst trader I have ever seen, and worst of all, his big picture never really came true. Just ignore him.

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    # 21 August 2009 at 10:38 PM
  • Paul said:

    Hi TPC, Fed bought record $5.6 billion in agency debt. This was the rocket fuel for yesterday’s new all time highs, coincidentally Bernarke spoke of recovery. He wants another term. Printing money without cost for now, debasing the $ in god we trust is taking over any rationality.

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    # 21 August 2009 at 11:19 PM