This post provides links to a number of thought-provoking articles I have read over the past few days that you may also find of interest.
• Edmund Andrews (The New York Times): World bankers suggest rebound may have begun, August 21, 2009.
Central bankers from around the world expressed growing confidence on Friday that the worst of the financial crisis was over and that a global economic recovery was beginning to take shape.
• Rich Miller and Alison Sider (Bloomberg): World economy emerging from worst recession since World War II, August 22, 2009.
The global economy may be coming out of the worst recession since World War II as record-low interest rates and trillions of dollars in fiscal stimulus spur demand.
• John Hussman (Hussman Funds): Bernanke sees a recovery – how would he know?, August 24, 2009.
Nouriel Roubini (Financial Times): The risk of a double-dip recession is rising, August 23, 2009.
The recovery will be far less robust than the optimists think. There is now a rising risk of a double-dip W-shaped recession if oil, energy and food prices continue to rise – as they are now – faster than economic fundamentals warrant.
• Michael Santoli (Barron’s): Gummy bears, August 24, 2009.
Try not to overthink what the market might be saying. Cut in half from here? Unlikely.
• Floyd Norris (The New York Times): America may need to find another financier, August 21, 2009.
As the United States rolls up record budget deficits, Asian countries are showing a reduced willingness to finance the debt.
• Wolfgang Münchau (Financial Times): How toxic finance created an unstable world, August 23, 2009.
Global imbalances would not have become so extreme if global finance had not provided the instruments.
