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EU prepares rescue package for Greece http://bit.ly/9OYSRN $$
3/14, 3:16 AM, by EasyForexDR

My service is 100% FREE, and I am amazed at the haters and two faced people out there still. I will eat these LOSERS for breakfast.
3/13, 1:33 PM, by johnwelshphd

RT @stockgod people who create twitter names just to bash the success of others are LOSERS & will never succeed in life. <--100% AGREE
3/13, 1:28 PM, by johnwelshphd

Now we are getting into the meat of small to mid cap earnings season: RINO, FUQI, GRRF, CNTF, CAAS, TSTC & more. I love meat.
3/13, 10:10 AM, by johnwelshphd

When my brokerage account balances get too high, I get too aloof, and I lose motivation. I need to feel broke to make more money.
3/13, 10:08 AM, by johnwelshphd

Money Management: When I deduct money from accounts, I act like I LOST IT. This motivates me to trade sharper, will the gain never existed
3/13, 10:06 AM, by johnwelshphd

http://twitpic.com/18bspz - Deduct -71k (most yearly profits) from brokerage accounts and will bury into savings account into ground.
3/13, 10:04 AM, by johnwelshphd

Garett Jones quoted in @NationalJournal about whether we'll see an economic recovery anytime soon http://ow.ly/1in8g #tlot #tcot
3/12, 5:10 PM, by EconDigest

Will be back on monday to trade full time after this 'part time' week. Daytrading will get better, thats for sure. Have a good weekend!
3/12, 4:07 PM, by johnwelshphd

AMLN limping into close. FDA may be passing the buck. (approvable letter) Let's see.
3/12, 3:58 PM, by johnwelshphd

Shorting this month, even though still profitable doing it, may have substracted 5 years off my lifespan. $$
3/12, 3:57 PM, by johnwelshphd

Apple Insider says AAPL sold 50,000 iPads in the first 2 hours that it was available - based on order IDs.
3/12, 3:52 PM, by Ro_Patel

S&P raised Indonesia's foreign currency debt rating to two notches below investment grade, citing improving govt finances
3/12, 3:42 PM, by Ro_Patel

NOK & INTC to merge their top-end smartphone OS b/c they face increasing competition from GOOG & AAPL
3/12, 3:32 PM, by Ro_Patel

E-Readers’ Price May Fall to $150 With New Chip, FSL Says - http://j.mp/9CHXcQ - AAPL AMZN SNE
3/12, 3:19 PM, by Ro_Patel

Opened LONG EURUSD @ 1.37579; 38% of the @Currensee community volume is trading the EURUSD with sentiment 62% SHORT #forex
3/12, 3:14 PM, by EasyForexDR

"Goldcorp (GG) reports a Q4 profit of 25 cents per share, in line with the consensus estimate." http://tinyurl.com/ybgn5rw GG
3/12, 3:06 PM, by goldstrategist

I have no position in CTIC so unbiased. If you want to throw away money, hold into the panel on 3/22. They need a miracle.
3/12, 3:02 PM, by johnwelshphd

IPCI , formally know as Vasogen, having a heck of a day. Low float monster that moved this afternoon on Focalin settlement news last night
3/12, 2:58 PM, by johnwelshphd

Global Search Engine Market Share: GOOG 85.74%, YHOO 6.09%, MSFT 3.39%. BDU 2.61%, IACI 0.63%, AOL 0.48%
3/12, 2:44 PM, by Ro_Patel

Sat, Mar 13, 11:13 PM ET, by Donald Marron
In its recent Going for Growth report, the OECD concludes that the economic and financial ...
Rates and the Dollar Index
Sat, Mar 13, 8:41 PM ET, by Corey Rosenbloom
I wanted to highlight a few quick recent charts of how the US Dollar Index ...
China, Biotech, Real Estate, Materials
Sat, Mar 13, 3:27 PM ET, by Michael Johnston
ProShares, the largest issuer of leveraged and inverse ETFs, has filed for SEC approval on ...
Fri, Mar 12, 11:13 PM ET, by Donald Marron
Going for Growth report. The purpose of G4G is to benchmark economic performance among the ...
Fri, Mar 12, 5:47 PM ET, by Michael Johnston
Agribusiness ETFs got a boost in Friday trading as good news from Potash Corporation of ...
Fri, Mar 12, 3:13 PM ET, by Donald Marron
On Thursday, I appeared on Canada’s Business News Network to discuss our budget woes. Also ...
Fri, Mar 12, 2:22 PM ET, by RetailSails.com
After a 2009 marked by heavy discounting and inventory liquidation, some retailers are starting to ...
February
Fri, Mar 12, 1:22 PM ET, by RetailSails.com
The U.S. Department of Commerce released February retail sales this morning, reporting that sales rose ...
Fri, Mar 12, 1:21 PM ET, by Corey Rosenbloom
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Fri, Mar 12, 12:37 PM ET, by Michael Johnston
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Fri, Mar 12, 12:27 PM ET, by Michael Johnston
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Fri, Mar 12, 11:32 AM ET, by Bob McTeer
Squeezing the balloon to find a free lunch If they had enough bathrooms and cool ...
Fri, Mar 12, 10:27 AM ET, by Michael Johnston
Airline stocks have been flying high in 2010 thanks to renewed hopes over an economic ...
Thu, Mar 11, 8:23 PM ET, by Donald Marron
Earlier today the Congressional Budget Office released an updated analysis of the Senate health bill. ...
Thu, Mar 11, 5:48 PM ET, by Michael Johnston
PIMCO, the bond fund giant that has quickly become a major player in the fixed ...
Intraday Triangle
Thu, Mar 11, 3:11 PM ET, by Corey Rosenbloom
If you’ve been lulled to sleep by the recent intraday market action, don’t fret. According ...
Trading Today
Thu, Mar 11, 1:17 PM ET, by Michael Johnston
The SPDR S&P Russia ETF (RBL) began trading on Thursday, becoming just the second U.S.-listed ...
Thu, Mar 11, 12:12 PM ET, by Scott V. Nystrom
Risk-averse investors are increasingly turning to stocks that provide a reliable stream of income. Certificates ...
Free Report: The 2010 Economy: What Can We Expect? When will Employment Recover?
| More

The Legacy of the Economic Crisis

Sat, Mar 13, 11:13 PM ET, by Donald Marron

In its recent Going for Growth report, the OECD concludes that the economic and financial crisis will leave an unwelcome legacy: a permanent reduction in economic activity. This loss averages about 3% of potential GDP across the 20 member countries for which the OECD was able to make these estimates.

As the following chart shows, those losses differ greatly across countries:

Ireland and Spain are the clear losers, with the crisis cutting economic activity by more than 10%. Despite being a catalyst for much (but by no means all) of the crisis, the United States faces one of the smallest losses. The 2.4% reduction in potential U.S. GDP is a sobering hit, but is less than that faced by 16 of the other nations.

Why does the United States appear to be on track for comparatively moderate output losses? Because of its resilience.

Remember that word “resilience”? It used to be a standard talking point when discussing the U.S. economy before the financial crisis. At the time, many economic observers were impressed with the economy’s ability to rebound from repeated shocks: terrorist attacks, corporate scandals, tech bubbles, wars, oil price shocks, etc.

That talking point understandingly fell by the wayside during the depths of the crisis. But it remains relevant as the economy moves into recovery, at least according to OECD’s analysis.

The OECD based its estimate of long-term output losses on two factors: a permanent reduction in employment and a permanent increase in the cost of capital. Given the global nature of capital markets, it shouldn’t be surprising that the cost of capital effect does not vary much among nations and that the United States falls right in the middle:


The big differences come in employment:


These estimates reflect both the size of the negative shocks that countries experienced (with Ireland and Spain clear outliers) and historical relationships about the persistence of unemployment in the various countries. Because of its comparatively flexible–and therefore resilient–labor markets, unemployment has been less persistent in the United States than in most other OECD nations, particularly those in Europe. That’s why the OECD expects the United States to bear lower long-run costs from the crisis than most other nations.


SDI Glossary: "CD" Definition
SDI Glossary: "price" Definition
SDI Glossary: "GDP" Definition
This Article's Word Cloud:   Because   Ireland   OECD   Spain   States   That   United   about   across   activity   bubbles   capital   clear   comparatively   cost   countries   crisis   discussing   does   economic   economy   employment   estimates   financial   from   impressed   less   long   losses   markets   most   much   nations   other   output   permanent   point   potential   reduction   resilience   shocks   talking   than   that   those   unemployment   unwelcome   various   when   with

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The Legacy of the Economic Crisis
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In its recent Going for Growth report, the OECD concludes that the economic and financial ...

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