Posted by: Tom Keene on August 28, 2010
Chairman Bernanke gets the press at Jackson Hole, but President Trichet is the must-read speech. Our Simon Kennedy listened carefully as the engineer distilled a potentially brutal “lost decade.” How lost is lost? Here’s Japan’s rollover in top-line nominal GDP.
Japan’s Animal Spirit Deflates to Early-1990s Levels
John Taylor’s Economics One is must-read because he aggressively advances others’ work. Here he pushes Ron McKinnon’s Beijing Consensus. Mark J. Perry’s Carpe Diem is a veritable chartathon and has a killer corporate profit treatment … with an assumption of future job creation. But where will the jobs be created?
Sven Jari Stehn writes a jewel for Goldman Sachs on structural unemployment. Summary: The grim picture is way more cyclical than expected and suggests “large-scale slack is likely to perpetuate disinflation.” Daniel Silver at JPM overlays existing home sales “units sold” on top of “median price.” I eyeball -10 percent year-over-year. Duck.
Peggy Noonan opines on the President. I’ll not opine but would suggest Team White House dust off James MacGregor Burns. Start with this jewel and then search back decades for “motivation and morality.” Burns, at 92, is must-read as we search for our vineyard of liberty.