The U.S. Federal deficit is at its lowest level since President Obama took office. New home sales rebounded in July and consumer confidence is at a seven-month high. Best Buy just announced way higher than expected profits, attributed to consumers spending more on their homes as the housing market improves. It all sounds like great news right?
Sure, but the stock market has been in the serious shitter the last few days. So what’s up?
Big data is up. Back in the 50, 60s and 70s economists didn’t have all this data. They had a fewer economic indicators and the world was a lot more compartmentalized. There were a few kingly economists and we all listened them. It eased our minds and our understanding of things.
Today there are so many indicators that we can’t tie market reaction to symptoms. The macro excuse for the recent market plummet is “anxiety over China’s economy.” I believe that. But can someone explain it to me?
We need a hero economic czar. Someone (anyone) who can explain all this stuff. How about a writer from The Economist?
Who is the U.S.’s smarted economist today? Does anyone have a nomination?