Thursday, October 20, 2011

Weisenthal Totally Flips His View

Earlier today, I responded to an attack on Tom Woods by BI's Joe Weisenthal. One charge I made was that Weisenthal was misdiagnosing the economy, that he was, among other, things calling for policy actions for a weak economy, when it would soon be obvious that the economy is not weak. I wrote:

Weisenthal's response consists of pretty much of telling us what is wrong with the economy and how to fix it. The problem with this is that based on the numbers Weisenthal watches, the economy is in the early stages of recovery, in a month or two Weisenthal may even realize this himself.

Well, it didn't even take a month. This afternoon, Weisenthal writes:

It's getting harder and harder to imagine we're in a recession.
He goes on to write and publishes a chart:

With today's initial jobless claims report, the closely-watched 4-week moving average of initial claims has fallen to its lowest level since this spring...
Meanwhile, the Citigroup US Economic Surprise Index continues to rally, as the data comes in mostly better than expectations.

Welcome to reality, Joe.

1 comment:

  1. Don't be so sure of yourself Mr. Wenzel. History shows us well that inflationary periods will see it's share of violent moves down as well. The Dow may embark on it's way to new highs this season, but don't be fooled by randomness. The market WILL attempt to recalibrate again!