Philly Fed manufacturing index was down -5.8, the survey of economists conducted by Bloomberg was looking for an increase of 10.0. I was not a math major in college but it sure appears that those two numbers are not close. Manufacturing in the Philadelphia region unexpectedly shrank for the first time in eight months, reflecting a drop in orders and employment. A positive number indicates expansion of manufacturing activity in the area covered by the Philadelphia Federal Reserve District, a negative number a contraction of manufacturing. Looks like we got us a contraction. That ain’t good.
Leading Economic Indicators for April was down -0.1%, when economists were looking for up 0.1%. The March number was a plus 0.3%. It sure doesn’t look like it’s going in right direction.
Uh Oh!
John Broussard
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury
Ph: 225-342-0013
From: John Broussard
Sent: Thursday, May 17, 2012 8:59 AM
Subject: It's The Economy Stupd: Jobless Claims
What is there to say. Claims are up. That’s not a good thing.
Economic Event | Period | Economic Survey | Actual Reported | Original Prior | Revised Prior |
Initial Jobless Claims | MAY 12 | 365K | 370K | 367K | 370K |
Continuing Claims | MAY 5 | 3225K | 3265K | 3229K | 3247K |
Spain
The yield on Spanish bonds are up 85 basis points in 2 weeks. That’s a very steep increase in the risk premium in a really short period of time. That is a warning signal if ever there was one.
Greece
Okay, there was a great piece in The Wall Street Journal on Greece yesterday. $898 Million was withdrawn from Greek banks on MONDAY! One day, 700 Million Euros disappear from the Greek banking system. That’s not a good thing! What’s going to happen to Greece? It’s like a multiple choice test:
Greece will…
A) Leave the Euro
B) Repudiate their debt
C) Renegotiate their debt
D) Repent and do what the rest of the Euro nations want them to do
E) None of the above
F) A&B
G) C&D
My answer is ‘F’, which is also just happens to be the grade I would give Greece for their handling of their entire economy.
John Broussard
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury
Ph: 225-342-0013
Fx: 225-342-9721
Email: jbroussard@treasusry.state.la.us
Street Address:
445 North Blvd, 7th Floor
Baton Rouge, LA 70802
Mailing Address:
P.O. Box 44154 Capitol Station
Baton Rouge, LA 70804-4154
Physical Location:
One City Plaza, 7th Floor
Corner of North Blvd & 4th Street
Exit 1B I-110 Convention Street,
Turn Left to get to North Blvd,
Turn Right on North Blvd
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