The Gold Standard | Pulling the wool

Been away from the base station in Singapore for the last nine days. Left on Sept. 8th for India and been in South Tamil Nadu, first visiting temples in Tanjore – Kumbakonam – Mayavaram belt and then spending time with parents in Madurai. Hence, the all-quiet on the blogging front. Tamil Nadu continues to shine with its creativity in sycophancy, scaling unprecedented highs.

Yesterday, I caught up with some of the headlines on the website,

Inflation in August Is Above Forecasts

  • Bloomberg
  • 09/15/2011 08:15 AM

U.S. Jobless Claims Rose to Highest Since June

  • Bloomberg
  • 09/15/2011 08:14 AM

Manufacturing in New York Fed Area Contracts at Faster Pace Than Forecast

  • Bloomberg
  • 09/15/2011 08:13 AM

Mortgage-Default Filings Jump 33% in U.S. as Bank Foreclosure Logjam Eases

  • Bloomberg
  • 09/15/2011 05:15 AM

Flat retail sales keep U.S. on recession watch

  • Reuters
  • 09/14/2011 07:56 PM

Obama-Boehner summer deficit talks not a template for president’s debt taming plan

  • Washington Post
  • 09/15/2011 05:31 AM

Zoellick: World economy in new danger zone

Yet, the stock markets have been rallying. Investors are being fed fairy tales and make-believe stories. This whole issue of the European Central Bank tapping other central banks for US dollar liquidity is actually a sign of distress. But, somehow, it has been made out to be a grand success story and, for now, investors have lapped it up. Or, alternatively, the investors are central banks themselves and their Sovereign Wealth Fund cousins.

Good friend Jim Walker has sent a great missive on this to his clients.

Post-script: I agree with Martin Wolf that UBS has done reformist oriented regulators (very few of them, though) a huge favour that no amount of rational arguments had succeeded in making.

DISCLAIMER: This is an archived post from the Indian National Interest blogroll. Views expressed are those of the blogger's and do not represent The Takshashila Institution’s view.