Kudos to Edward Harrison of Credit Writedowns, a blog I pretty much only read for Marc Chandler’s contributions. Except for this morning.
Harrison had this, early this morning (my time): The QE2 trade is now officially over
Good food for (ongoing) thought and nicely timed on the late ES move and this evening’s USD move.
Just on a counter-note to Bullard’s assessment of a strong economy, The Aleph Blog notes the weakness in the final Q4 GDP figs:
Things are not as good as they look
In 4Q 2010 real GDP rose 3.1%, while real Gross Domestic Purchases fell 0.2%. Why? Energy and other import costs rose which depressed the price indexes for GDP versus Gross Domestic Purchases. Over the long haul, the two series are close to equal, but when they diverge, they tell a story. The current story is that average consumers in the US are doing badly, while those benefiting from high corporate profits, and increasing exports are doing well.