Explaining Southern California's economy

Your Economy: The Andy Dean treatment

My latest appearance on "America Now with Andy Dean," this time to talk about yesterday's relatively positive economic news, which caused the Dow to rise almost 500 points. As always, a lot of fun to go back and forth with Andy and a good chance to summarize my DeBord Report post from Wednesday about the eurozone crisis, central banks, the impending jobs report, housing data, and whether China will be able to hold its own economy together.

I'm on at about the 31:00 mark. Enjoy!

Follow Matthew DeBord and the DeBord Report on Twitter.

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Markets rally! Have we finally turned a corner on global crisis?

Sarkozy, Merkel And Monti Meet In Strasbourg

Thomas Niedermueller/Getty Images

STRASBOURG, FRANCE - NOVEMBER 24: French President Nicolas Sarkozy (C) shake hands with German Chancellor Angela Merkel (L) and Italian Prime Minister Mario Monti (R) on November 24, 2011 in Strasbourg, France. The three are meeting to seek agreement on how to resolve the Eurozone debt crisis as both Monti and Sarkozy are under pressure to reassure financial markets over the future of their respective countries' economies. (Photo by Thomas Niedermueller/Getty Images)

The markets are rallying big-time today, with the Dow alone up more than 400 points. So what's going on? Elizabeth Harrow at Shaeffer's Research sums it all up rather neatly:

[T]he good news seems to be pouring in from all corners of the globe: Euro-zone leaders finally agreed on ground rules regarding the expansion of the European Financial Stability Facility (EFSF); policymakers in Beijing lowered their reserve requirement ratio for banks; and the Federal Reserve coordinated with the European Central Bank (ECB), Bank of England, Bank of Japan, and other major central banks to lower the cost of emergency dollar loans. And, as if the bulls needed another catalyst, the day's slate of domestic data was surprisingly robust. Payroll giant ADP announced that the private sector added a stronger-than-forecast 206,000 jobs last month, while pending home sales and the Chicago PMI also improved beyond economists' expectations.

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Reportings: Solyndra scandal; central banks; Lehman Day

Libertarians attack! Megan McArdle at the Atlantic and my old pal Tim Cavanaugh of Reason focus on the political football that bankrupt California solar startup Solyndra has become. Megan: "Its technology was essentially a large bet that prices of silicon would stay high, making its product competitive." And Tim: "[T]he real outrage is that the government is proudly putting your money into companies that private investors are unwilling to put their own money into. Once this violation of common sense has taken place, the story can only end, as it appears to have ended here, in suffering and crime." (The Atlantic, Reason)


Central banks to the rescue! For now... "The European Central Bank said it will coordinate with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank to offer three-month dollar loans to banks through the end of this year. The move is an effort to prevent Europe's debt crisis from derailing the global economy's rebound from recession." (AP, via the LAT)

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