Welcome to Capital Account. European leaders have a breakthrough at their summit! They agreed to do MORE, and continue their game of "debt hot potato." New debt schemes have been announced to try and help Spain and Italy avoid getting burned by the bond market for now, and to allow rescue funds to bailout banks directly. Wait, we though Herman Van Rompuy said that this was "a credible solution for the long term." Hmmm...how's that going?
And in the US, the personal savings rate rises to its highest level since January. Couple that with virtually no real income growth, which we see in numbers out of the commerce department today, and we ask the question: Where is the economy headed? Karl Denninger of Market Ticker will be in studio to tell us what he thinks, and if all these numbers reinforce theview that a recession is coming or already here.
But we can't end without talking about healthcare can we? Yesterday's landmark supreme court healthcare ruling is still being digested, but we some big winners as well as losers on wall street. Insurance companies certainly raked in some big gains. We've heard a lot about the politics behind the healthcare debate, but what about the mathematical and economic one. We'll talk about that with Karl Denninger.