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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (26016)	2/8/2005 11:13:10 AM
From: J_Locke	Read Replies (1) \| Respond to of 110194

Russ, what data are you looking at that makes you think there's an economic slowdown underway? My impression is that there was an autumn slowdown, but the economy has re-accelerated. Retail sales were stronger in Dec. and Jan., as were auto sales. First time unemployment claims are trending lower. Demand for corporate credit is rising. Tax collections are up. Some of the more speculative housing markets have clearly topped, but that has as much to do with how overextended prices are as any changes in interest rate policy. I'm as bearish as they come, but I'm just not seeing data that leads me to believe that the economy is nearing the cliff, much less has gone off the edge.

To: russwinter who wrote (26016)	2/8/2005 11:54:39 AM
From: Crimson Ghost	Read Replies (1) \| Respond to of 110194

Takenaka Says BOJ, Government Should Boost Money Supply Growth Feb. 8 (Bloomberg) -- The Bank of Japan and the government should work together to increase money supply growth and put an end to more than six years of falling consumer prices, Economic and Fiscal Policy Minister Heizo Takenaka said. ``It's necessary to increase money supply to end deflation,'' Takenaka told reporters in Tokyo. ``If you consider the potential rates of growth in real terms and future gains in prices,'' money supply should expand faster, Takenaka said in response to a question. Money supply levels are ``up to the BOJ to decide.'' M2 plus CDs, the main measure of money supply, rose 2 percent from a year earlier in January, the Bank of Japan said in a report earlier today. The pace of growth has been unchanged for five straight months. M2 plus CDs, which tracks bank savings, cash in circulation and certificates of deposit, grew at an annualized 4.4 percent pace, the central bank said. Bank lending fell 3 percent in January from a year earlier, the smallest decline in more than six years, the Bank of Japan figures also showed today. Bank lending had the smallest decline since September 1998, when it fell 2.7 percent, according to Bloomberg data. Lending hasn't risen since September 1996.