Toro's Running of the Bulls Market Blog

The Death of American Manufacturing is Greatly Exaggerated

From RealMoney.

 ... The value of U.S. manufacturing output in real terms (adjusted for inflation) was a little more than $3 trillion in 2008. That is up from $1.2 trillion in 1972. If the U.S. manufacturing sector were a separate country, it would be the world's fifth-largest economy (behind the rest of the U.S., Japan, China and Germany). The U.S. remains the world's largest manufacturer. Full stop. ...

The Religion of Rationality

Academics in the social sciences rely on theories and models of human behavior.  For academics whose entire career and livelihood depends on their theories, events that challenge their theories threatened their existence.  Thus, there are powerful incentives for those whose theories are challenged to explain away the events that undermine their credibility.

The Failure of Economics

A great read by Paul Krugman.  Here is an abridged version.

Trade and Offshoring

From VoxEU.

The Never-Ending Bubble Machine

Sorry, I have been lax keeping up with items as of late, particularly this insightful quote from several days ago, via Zero Hedge.  It is from Lou Jiwei, Chairman of the China Investment Corp.

Oil to Natural Gas Strip Ratio

I am hearing a lot of chatter about the price of natural gas, particularly the ratio of the price of oil to the price of natural gas.  Historically, the ratio of oil to gas has been 6:1 to 10:1.  This week, that ratio soared as high as 26:1.

People are using this ratio as a reason to jump into natural gas, seeing it as extraordinarily cheap relative to oil.  But is it?  If you look out onto the strip, you will see that the ratio collapses out a few months.

Naomi Klein all for Shock Doctrine Now

We have followed the travails of Naomi Klein's implausible theories about "The Chicago School's" and neoconservative's penchant for creating or exploiting crisis to advance their ideological agenda.  (Ms.

Peak Oil, Shmeak Oil?

I have no horse in this race.  However, the debate about Peak Oil goes on, though you hear less about it now that oil is no longer at $147 barrel (for now).

Leading Economic Indicators at 26-Year High

Helping to at least partially explain the rally.  From Carpe Diem

Gold > $455, Stock Market Return = 0%

Interesting post from Crossing Wall Street

I was playing around with some data and I came with an interesting stat: All of the stock market’s gain since 1970 has come when the price of gold is below $455.