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: 2012 » 04/2012 » 04/16/2012
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Taking a deeper dive into the definition of inflation

Sometimes our familiarity with a topic gets in the way of our understanding of it. I often think that about inflation. It's widely known that inflation is a condition of rising prices, or what my favorite macroeconomics text defines more precisely in this way: "Inflation is an increase in the overall level of prices in the economy." And while this idea is serviceable for some purposes, it's pretty inadequate if you try to think about how a central bank goes about the business of controlling inflation.

EIA: "U.S. rail carloads of coal in first quarter of 2012 lowest since 1994"

"Total U.S. carloads of coal by rail during the first quarter of 2012 fell to 1.55 million carloads, the lowest level for any quarter since the beginning of 1994, as demand for coal by the U.S. electricity sector decreased."

Apple 5-Day Losing Streaks

Apple (AAPL) is now down 8.38% over the last five trading days, in which it has declined each day.  Over the last ten years, Apple has had 24 prior 5-day losing streaks, the last occurring on September 30th of last year.   As shown below, the stock has gone up on day six half of the time, but it has averaged a gain of 0.63% on the day.  Over the next week, the stock has been up 62.5% of the time for an average gain of 1.23%.  Following the 5-day losing streak back in September, however, the stock went on to decline 1.76% on day six and 3.02% over the next week.

The Summit of the Americas 2012: Agree to Disagree on a New Open Drug Economy

Three main issues surrounded this year’s Summit of the Americas in Cartagena, Colombia this past weekend. For the most part, those issues created a division between the Americans and Canadians poised against most of Latin America with the exception of the prostitution scandal that will likely be more of an issue between Obama and the Republicans.

Lawler: Early Read on Existing Home Sales in March

CR Note: Some interesting comments from Tom Lawler ... From economist Tom Lawler: Early Read on Existing Home Sales in March: Not Much Change (SAAR) from February, but Aggregate Numbers Miss Strengthening Market

Egypt's Transition Imbroglio

The rapid developments over the past month have shown that legal and constitutional loopholes have the potential to seriously undermine Egypt’s democratic transition.

Reform in Ukraine

Implementing sensitive reforms in the run-up to Ukraine's parliamentary elections in October will be politically difficult.

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