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After lemming exodus, manufacturers look to U.S. | Reuters
This is good news for the U.S. and gets back to China’s decision to increase domestic demand.
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Economics of Contempt: Mind-Boggling Nonsense from John Cochrane
More on just how crazy the Chicago really is. Only a totally moron with zero basic understanding of how banking works would ask this question: “Why would Lehman’s failure cause a panic? Why, after seeing Lehman go to bankruptcy court, would people stop lending to, say, Citigroup, and demand much higher prices for its credit default swaps (insurance against Citi failure)? ” Cochran, he’s a professor of finance. When your theory says markets immediately price risk fully with 100% knowledge of the future, you end up looking like total moron.
A bit short from yesterday due to dealing with taking my mom to the hospital. She’s fine! 
From what I understand, MMR is concerned that growing current account deficits cannot be sustained.
Perhaps too early, but does the first link suggest that current account deficits are not unsustainable i.e. over time, the CA deficits gets corrected
I am more concerned with the demand leakage that results from the CA deficits than anything else.
The sustainability of the CA deficits isn’t something I worry about that much, because they do correct over time, and these corrections don’t have to be horrible.
It’s one of those “in the long run, we’re all dead”. We need to have a bit of concern about plugging the hole in the CA simply because any government deficits will get eaten by our trade “partners”, like we saw in the aftermath of the 2008 crisis.
Thanks for answering my question Mike. And apologies in advance if my questions are too basic, just learning.
If we agree that CA deficits correct over time, then I am trying to understand why the concern over CA deficits. I am assuming there is some benefit when our government deficits get eaten by our trade partners – we give them pieces of paper and they gives us some good (maybe a toy). If the toy was built in the US, consumers would have to pay a lot more. Let’s say that all the profits went to top management, who in turn, were afraid about the crisis and placed their money in treasury bonds (similar to what China does).
Then, isn’t any net benefits of hiring workers in the country taken away by higher prices that consumers pay?