Macroeconomics

Bridging the Earnings GAAP

This week we return from the North to look at the gap between GAAP and NIPA earnings, in particular why earnings growth on national accounts has been so slow. We try methodically to nip the controversy in the bud, but the answer may be more elusive than you might expect. We find that, while the significance of the divergence may have been exaggerated, it is still sobering for investors.

Macroeconomics

Oh, Canada

What if a housing bubble burst and no crisis showed up? Canada may be in the process of finding that out.

Macroeconomics

Taking Exception to Manufacturing

Everyone loves a good PMI. It’s the bad ones that can make stocks go down. This week we look at why a recent disappointing manufacturing number may have shattered investor belief in American exceptionalism (in the economy).

Macroeconomics

Notes from the Underground Trading Desk

In this week’s Wrap-Up, we cover the turmoil in the repo markets. We explain what repos are, why they are dislocated, and what this means for other markets. While it may not be time to worry yet, we consider developments in money markets that might tell us it’s time to be more cautious.