Sunder’s List: It’s déjà vu all over again!

Economy

(Photo credit: yourdoku)

Europe is back having world-markets like a yo-yo. Yogi Berra would say: “It’s déjà vu all over again.” Spain’s industrial output is sliding at an accelerating rate: output fell 5.1% (y/y) in February, after 4.3% in January and 3.5% in December. Unemployment is at 23.6%. “What is the EU going to do? Send in the army?” (Telegraph)

Satyajit Das: China can’t rescue the world because its recent growth is largely illusion. Its headline growth of 8-10% since 2007-08 has been driven by new lending averaging 30-40% of GDP. Up to 20-25% of these loans may prove to be non-performing, amounting to losses of 6-10% of GDP. If these losses are deducted, Chinese growth is much lower. (Independent)

Shilling on the U.S. economy: “The story is that there is nothing else except consumers that can really hype the U.S. economy. So if consumers retrench, there is not really anything else in the U.S. economy that can hold things up.” (TRB)

There’s a difference between knowing the path, and walking the path. Empathy gap is the main reason behind most trading mistakes. Empathy gap is the difference between how you believe you will act under certain circumstances and how you actually act when the time comes. (IH)

Stay tuned for this week’s edition of the Technical Analysis Tutorial from Abhishek!

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