GDP Vs GDI Debate; Mexico’s Failing Democracy

If you’ve heard that Gross Domestic Income is a better measure of economic activity than Gross Domestic Product, forget it. The two are sending divergent signals currently, with the former much weaker than the latter; but GDP is the one we trust the most currently. Eric explains why. … The US economy has become less interest-rate sensitive than it’s been in the past, so another thing to forget about are the “long and variable lags” before the economy reacts to the latest round of tightening. They’re not coming. … Also: Melissa updates us on the Mexico’s stock market and political developments, warning investors to tread carefully there.