German Senitment Chicanery Smells Like Japan

As Jeffry Snider of Alhambra laments “It’s one of those things I wish I had more time to thoroughly investigate. What can these Germans possibly be thinking? While the ZEW sentiment indicator actually came back down a bit in July 2020 from its 2005-style perch in June, the ZEW for all of Europe actually went further upward.

Either that means Christine Lagarde has been successful (at something other than practicing politics) for the first time in her long public career (she was a successful lawyer previously, so there’s that and it explains a lot about her mobility), or something else is going on. I don’t think there’s any doubt that it is the latter.

History has shown, twice, how this sort of measured sentiment aligns way too perfectly with central bank activity rather than activity of the real economy variety. Monetary policies lead even the most business savvy leader to believe it will work – even after the numerous times it so clearly doesn’t.” Read more…

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