The European Bank for Reconstruction and Development (EBRD) forecasts Hungary's GDP will contract 0.2% this year in its latest Regional Economic Prospects, according to a report by state news wire MTI.
to business leaders in new york and elsewhere, the fact that it was going to be a roughened of 2012 was no surprise. right. exactly. we ve left out one important metric here, which is how did the markets react? the markets don t care. we re just still cruising up in a 14,000 accident practically dow jones index, and to the degree we care what the equities markets think of a slight contraction, they seem sanguin. it s true the markets are going up, but they are because the fed has been saying we re going to keep throwing money into the bond market. we re going to buy up mortgage-backed securities. that raises all asset prices. that doesn t change the underlying growth dynamic in this country, and at some point those lines enter sect. at some point unless you have real growth in the economy, corporations can t keep making money. the markets are off because of corporate profits chshgs are doing spectacularly well. they re starting to contract. they have done very well for the la