With Ziggers and Zaggers being tossed around on a daily basis we are finding it entertaining that many are switching sides so quickly. Here are this week’s Zigs from our friend Robert McTeer, former Federal Reserve Member, Aggie, and one of our favorite local economists:
1. “Why are we surprised Europe is slow to adopt the solutions we did, when here in the US, we are still criticizing our actions” : Mr. McTeer, somewhat flipping said this during his talk, and makes for our lead off positive, as this implication is the EU will eventually start making dramatic economic moves, and of course, it is not so easy to just turn on the money spigot!
2. The EU union members are whipping their Club Med little brothers into shape : In another humorous example of hopeful resolutions from the EU, McTeer mentions that is takes some time to whip the perennial slackers into shape, but, per McTeer it will happen. A second positive for a room full of Zaggers who say the EU is hopeless.
3. Interest rates will lead to eventual inflation : As fellow predictors of inflation much earlier in this recovery, being incorrect up to this point, having our buddy Mr.McTeer mention it is coming gives us hope. Inflation is a welcomed friend in this current economic situation since we could infer that growth and demand would be the cause of such pressures. We are hanging our hat (loosely..haha) on this one as a positive this week.
4. Macro Economic Numbers are Awesome : McTeer mentioned, better GDP, Employment, Consumer Confidence, Retail Sales, PPI, CPI, Production and Capacity Utilization, all going in the appropriate direction. This is a multi positive, and we were impressed at him being able to rattle off all these economic reports and numbers . Great work Bob, for a multiple positive!
5. Lastly, “This Economy is like a Coiled Spring” : McTeer mentioned this to our happy surprise, saying all we have to do is get out of our own way (politically speaking, to both respective parties) and the US is ready to grow rapidly. Which we found as the most positive comment of all, and as such, made for our final positive of the week.
Thanks once again for Zigging with us while others continue to Zag. Even with next week being a short week, we feel sure the Zaggers will be out in full force as the super committee reports their budgetary findings and recommendations.
On, last item, a special thanks for reading this weeks posts as they were a bit heavy due to my time in the trenches. We promise to get back on the tracks of broader information, but wanted you to hear what was on our mind this week.
Stay Positive and Have a Great Weekend!
PS Watch out Turkeys!