It seems the world is filling up with negative news. The US is risking technical default next week and a higher chance of a rating downgrade. In Europe, Italy and Spain 10year yields are up again and there is no resolution of the chronic euro fiscal crisis. China is facing up to limitations in its own vast investment-led approach, as anger builds over the high-speed train crash near Wenzhou.
I almost feel numbed, detached from constant crises. It's been four years now since the current crisis started building in 2007. Before that, there was the Internet crash and the Enron problems in the equity market. Before that, the Asia crisis, the Russia crisis, the 1994 bond market shakeout. Before that.... Tulip mania, the South Sea bubble. I am disillusioned that we never seem to really get that much better in policy terms.
We get the first Q2 GDP estimate this morning, and let's hope it's not a downside surprise.
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