The Bank of England released a report regarding its quantitative easing efforts. In summary, it says the top 5% of households (measured by wealth) benefitted heavily from QE, but it suggests the rest of the population didn’t. If The Bank of England’s QE effort is supposed to help their economy, it is failing.  Is there any reason to expect the Fed’s QE to be any more successful? Look at income stats in the US.  They’re terrible.

 

Here in the US:

  • The rats are still jumping ship.
  • More technicals are very weak.
  • The Case-Shiller Housing report is rosy but not for good reasons.
  • The BEA 2nd estimate of Q2 GDP says growth was marginally less anemic at +1.7%.
  • August Consumer Confidence rolled over and is considerably below average recessionary levels (very weak).
  • Jackson Hole hosts economists again. Not much will come of it.
  • The latest US manufacturing PMI report shows a stall in growth.

In Europe:

  • GDP is about to take a precipitous drop.
  • Germany approaches stall speed.
  • Tomorrow should be very exciting for the Italian bond market.
  • Spain lowered GDP estimates and found a new budget hole.
  • Portugal’s tax receipts are coming up short. Another bailout is likely in the cards for next year.
  • The UK contracted slightly less than thought in Q2.
  • The Danes experiment with punitive negative interest rates for banks –to force them to make loans.
  • There is a real and growing threat that Spain will fragment into factional regions.

In Asia:

  • China’s manufacturing index continues to contract.
  • The Shanghai Stock market index is flirting with the lows of 2008-2009.
  • Japan lowers GDP estimates.
  • India is seeing infrastructure spending slashed in half.

In South America:

  • Nothing this time.

 

Much more in the Greedometer Newsletter.   here