The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Tuesday, January 10, 2012

US consumer credit explodes--strongest in 10 years (more good news)!

It looks like the world's biggest economy is bouncing back, contrary to many doomsayers' predictions. Great news for Australia and Asia. UBS comments:

* US: Consumer credit rose $20.4bn (well above consensus fo $7bn and the largest one month rise since 2001), after a $6bn rise in October. The rise was again led by nonrevolving credit (+$15bn), fueled by student loans.

* EU: Merkel/Sarkozy said there is "a good chance" of reaching agreement on fiscal integration by end of January. They also called for a plan to push growth and job creation as the "second pillar" of their strategy to stabilise the monetary union (FT).

* EU: Sarkozy has won backing from Merkel for a financial transactions tax; Britain remains opposed. EU Finance Ministers are due to discuss this in March (Bloomberg).

* US: Fed's Lockhart: skeptical QE3 would be effective but "not closing the door to that option" (Bloomberg).