Back and Forth: Is The Commodity Copper Shouting Recovery?

Economists and commentators (recently Bill Gross for example) go back and forth on our economic future. Yes, at some point, the music will stop this year, next year or 2014 perhaps? On Friday we got the word that the US was beginning to grow as the unemployment rate fell to 8.3%. Gold tanked on Friday on the news and is declining significantly today.

Yet, the Fed, to whom I will present a paper next month, knows that significant banking risks abound through 2014 and accordingly they have set short interest rates near zero. While the unemployment rate may or may not be decreasing no one has yet dealt with the debt overhang and its effect on the banking system. We talked about this in the Morning Note from Wednesday.

Written by Michael A. Berry, Ph.D. - [ Discovery Investing Web Site ]