1. 03/22/11 ECONOMIST REPORT

4. Economic Indicators Recap

6. An Oily Situation  Coalition strikes against Libya result in stalemate.  Intensified demonstrations in Syria and Yemen.  Japanese energy demand lowered in short run, but supply potentially lowered in long run.  Crude futures closed at $104.80.  Gasoline prices increased 4.7% in the U.S.

8. Austerity  Merriam-Webster’s 2010 word of the year.  Actions taken by governments to reduce deficits.  Greece and Ireland forced to adopt austerity programs with bailouts.  Portugal following Greece’s path.  10 year government bonds currently at 7.4% (2 yr. = 6.5%).  Portuguese Prime Minister Jose Socrate pushing aggressive austerity plan to avoid bailout from EU.  However, opposition party (and parliamentary majority) are refusing to back him.  European Stability Mechanism.

10. Looking Ahead…  Are food and energy inflation “transitory?”  Portugal austerity vote tomorrow (03/23).  Japan reconstruction.  Irish banking industry stress tests published next week.  New Home Sales (03/23).  Durable Goods (03/24).