February 8, 2013 - In investing, every silver lining has a cloud. Almost all good news can be spun as bad news, and vice versa. The economy’s booming? Watch out for inflation and higher interest rates. The market crashed? What a buying opportunity!
Congress is ending what may be its least productive year on record after government shutdown threats, the collapse of debt-reduction talks and little action to fix the worst U.S. economy since the Great Depression.
Prime Minister David Cameron’s austerity policies, which helped U.K. debt beat world peers in 2011, are backfiring in the bond market with the economy on the brink of a recession and borrowing needs approaching records.
The global economic recovery now gathering pace is deepening income inequalities in both advanced and emerging nations, threatening to undermine policy makers’ efforts to repair their finances and fix currency misalignments.
Stocks slid, while the dollar and Treasuries rose, amid concern a meeting of European leaders this week will fail to halt a debt crisis that threatens to drag U.S. corporate earnings to the first decline since 2009. Oil slumped while agricultural commodities rallied.