Whoever would have thought that some people once called economics the most dismal of sciences? Certainly, as the current crisis goes on and on, those of us who consider ourselves to be economists scarcely are able to find the time to squeeze in a dull moment, even here and there. But even at a broader level, interest in that most dismal of dismal topics - the theory and practice of central banking - seems now to fire up levels of enthusiasm here in Spain that make even the appetising prospect of a forthcoming Real Madrid-Barça football match pale in intensity. Even if it is the case, I have to admit, that the everyday Johnny (or Jill) come lately sitting in the bar still - truth be told - prefers the sports columns of the daily newspapers, or the lacivious details of the latest romantic adventure of one of the rich ...

The Dow Jones industrial average moved up 132 points on Tuesday and all major indicators rose more than 1% as the Australian central bank’s decision to raise interest rates boosted optimism about the world economy.   Investors' show of confidence ahead of a flood of corporate earnings reports came as Australia became the first major country to raise interest rates since the onset of the financial crisis last year.  The move signals that policymakers see that country's economy as strong enough to withstand higher borrowing costs. That touched off hopes that other economies might also be growing.

Australia's decision dented demand for the U.S. dollar, which, in turn, raised commodities prices.  US energy and materials stocks moved up, oil also rose, and gold reached a record high.  Stock investors cheered the drop in the dollar because it boosts corporate profits by making U.S. goods cheaper for overseas buyers.

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As the second-largest provider of electricity to the United States, Constellation Energy Group Inc. (NYSE: CEG) has a tremendous upside. At least, it would if the economy were growing strongly. 

Unfortunately, that’s not the case. And that means Constellation will have to clear a number of hurdles if it’s going to fulfill its long-term promise. Last year, the company bet big on higher energy prices and paid the price dearly when the economy collapsed.

Constellation’s very high level of debt, with large bond maturities in 2009 and 2012 at that time meant they were flirting with financial disaster.  That forced the company into a deal with Électricité de France SA (EDF), in which the European energy giant agreed to inject $4.5 billion into Constellation in exchange for almost 50% ownership of its nuclear plants.

That includes a brand new plant, Calvert Cliffs 3, that’s still subject

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There is little financial news today; markets in America were closed for the 4th of July weekend. So, we begin our week with a quote from our favorite philosopher: Yu Faz. “The rich man’s heart breaks…just like the poor man’s. For all his money, he cannot buy another one.”

Yu should know. He was exiled after he had a liaison amoureuse with one of Genghis’ concubines.

Pity poor Yu! Pity the poor rich…! Here at The Daily Reckoning, as long-term DR sufferers know, we always take the part of the underdog. We almost never saw a lost cause that we didn’t want to join. We admire die-hards…and we like the company of scalawags.

So, today, we take up the banner of one group that is all these things…a group that is widely despised and routinely persecuted…the ‘untouchables’ at the top of the economic pyramid: the rich.

“Switzerland at war with the rest of the

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November 19, 2008 - Solar stocks to a hit on Tuesday on comments from J.P. Morgan’s Christopher Blansett about the potential for reduced subsidies for solar in Europe. Blansett said that 2008 may he thinks 2008 was a peak for solar energy subsidization and recommended First Solar (Nasdaq:FSLR) as a “safe haven.” We disagree with Blansett’s assessment and timing. We think his assessment is doesn’t account for the legislative realities in place in the U.S., Japan and Europe. And we think his timing to call for instability in solar stocks is extremely late. Here is our take: Blansett clearly isn’t impressed by Governor Schwarzenegger’s mandate for 33% renewable energy contribution in California, the potential impact and long-term stability in the U.S. market provided by the eight-year solar tax credit extension, and the expectation that Obama’s administration will likely accelerate the passage in Congress of a federal RPS. We think these ...

GreenChek Technology (GCHK) is a maker of a hydrogen-generating system that helps internal combustion engines burn fuel more cleanly and efficiently. The company’s Onboard Hydrogen Generation (OHG) system produces and then injects hydrogen gas into a regular internal combustion engine. Hydrogen enhances the combustion process by allowing a more complete fuel burn while significantly reducing harmful emissions typically consisting of unspent fuel. GreenChek has operations in the U.S., Canada, Asia and Europe.

The Onboard technology is also used for emissions reduction technology and fuel economy enhancement in trucks, locomotives, and automobile engines. Independent studies have shown that GreenChek’s technology lowers emissions by as much as 50%, reduces fuel consumption, increases horsepower, improves engine life, reduces maintenance costs and requires only minimal driver maintenance and intervention. The company is forming partnerships with Fortune 500 companies such as TNT and Norbert Dentressangle Group, as well as with the French government and conducting field

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by Edward Hugh: BarcelonaThe euro fell against the dollar yesterday - by the largest amount registered in any single day since the introduction of the single currency in 1999. The drop was effectively a response to the growing signs of strain in Europe's banking sector. Activity in support of banks was widespread throught the day, and across the whole system. The euro fell 2.5 percent to $1.4077 by mid morning in New York, down from $1.4434 on Monday. Early this morning in Europe it was trading in the $1.41 range.This current pressure on the euro is more the result of signs of liquidity problems in the banking sector than it is a response to the growing weaknesses in the eurozone real economies, which, as we saw at the end of last week, are really pretty substantial in their own right. What follows is simply ...

by Edward Hugh: BarcelonaWell, it's official, or at least its as near official as it's going to get at this point: the Eurozone is in its first recession. And how do I know this? Well Frankfurt-based Financial Times European economy correspondent Ralph Atkins told me it was, in this article last Tuesday. Joking aside, this line-judge ruling (we will remember the eurozone doesn't have an official referee with the authority to call recessions like the US NBER) from Ralph is significant, both due to the fact that he is about as plugged-in as it is possible to get - without, that is, electrocuting yourself on all that high voltage cable knocking about over there - to mainsteam ECB thinking over on Kaiserstrasse, and also because he has been one of the most stalwart journalistic defenders of the idea that the German economy was finally - after many ...

According to newspaper reports and my sources in France, the recent negotiations between Nicolas Sarkozy and Dmitry Medvedev over Georgia were – to put it mildly – "very strained." Several insiders with whom I've spoken have quoted Sarkozy as belting out “let’s get out of here; its not negotiable” in the middle of the discussions. The rest of the story I have heard through the grapevine goes like this: Apparently, shortly after the talks began Medvedev left the room, leaving the French president alone with the negotiators. Four hours into the talks with the Russian president still nowhere in sight, Sarkozy lost his temper. With the protocol snub of having been left with Russian negotiators as his interlocutors, the French president stood up and told his team they were walking out. Someone frantically went looking for Medvedev, who came back ...