One thing about old Europe that does not disappoint is the architecture. Those old boys had a flair for the dramatic, and they put it out there whenever and wherever they could. I normally don’t do this in this column, but today is for being different. Check out the design flow in this picture.
The Commerce Department said January orders for durable goods fell by a steeper-than-expected 4 percent. Economists expected a 1 percent drop. The report said businesses spent less on machinery and equipment in January after a tax break expired.
Okay, raise your hand if anyone believes that this “big” drop actually means a thing. Just as I thought, a bunch of smart people out there in Trader Ed land. It doesn’t mean a thing because the fact is that companies will have to eventually buy the machinery and equipment regardless of what the tax situation is at any given moment. What are they going to do, go out of business because they lose a tax break? “Wahhh. We won’t buy any more equipment. Wahhh.”
Speaking of Europe (again and again), how about that G-20 meeting? I tell you those big guys in the top 20 industrial powers really stuck it to Europe regarding contributions to the IMF, didn’t they? “You guys get your act together before we start giving you more money, so there!”
Some non-European countries, led by China and Japan, seem willing to give more cash to the IMF but only if Europe moves first.
Europe is moving and the money will come, and it will come sooner rather than later because the global economy that the G-20 group depends on goes south if Europe does not contain its financial crisis. If it goes south …
The G20 said in its communique that it was “alert to the risks of higher oil prices”, and it welcomed a commitment by oil-producing countries “to continue to ensure adequate supply”.
This is now the immediate looming problem the global economy faces and if Russia, Canada and Mexico follow Saudi Arabia’s lead and increase exports sharply, this could become a non-issue, at least for the near term.
The Dow has been unable to break through 13,000 and hold. It is almost heartbreaking to watch it struggle so. Perhaps today, with a valiant effort, it can climb that mountain and stay put.
The number of Americans who signed contracts to buy homes rose in January to the highest level in nearly two years, supporting the view that the housing market is gradually coming back.
I think I’ve been a bit ornery today, so the above is my way to say “Hey! It might not be pretty, but it ain’t all bad either.”
Trade in the day – Invest in your life …
Trader Ed
