Thoughts From Joe - July 12, 2013July 12, 2013 Posted by: Joe Morgan
The International Monetary Fund reduced its U.S. outlook to 1.7 percent and cut expectations for emerging markets as well. The IMF, as well as most other economic prognosticators, has been expecting growth to pick up for several years now. Those expectations have followed a reliable pattern of downward revision. Economists always predict reversion to the mean, but what if the true long term mean has shifted downward? Well, they’ll figure that out in 20 or 30 years.
The 4-1 vote was made possible by the Jumpstart Our Business Startups Act and will go into effect in about 2 months. About $900 billion in annual private offerings are affected by the ruling. The rule of “caveat emptor” is healthy. However, when “mom and pop” lose their life savings in an inappropriate hedge fund let’s hope the taxpayer is not tapped to bail them out.
Exports fell 3.1 percent while imports dropped 0.7 percent. Both measures underperformed economists’ expectations by around 6 percentage points. Is the Chinese miracle coming to an end? Not likely. There are some holiday issues with the calendar that may have affected the data, but more importantly China is simply following...Read More