Author Archives: Jesse

Served by Jesse of Le Café Américain “Flagrant evils cure themselves by being flagrant; and we are sanguine that the time is come when so great an evil…cannot stand its ground against good feeling and common sense…” John Henry Newman The reporter on Bloomberg television just mentioned as a snide, smirking editorial aside, that Sheila […]

Served by Jesse of Le Café Américain The Atlantic hurricane season is officially from 1 June to 30 November. But according to the Atlantic Oceanographic and Meteorological Laboratory AOML, with regard to Atlantic hurricanes there is a “very peaked season from August to October”, with: 78% of the tropical storm days 87% of the “minor” […]

Served by Jesse of Le Café Américain “You know, Paul, Reagan proved deficits don’t matter.” Dick Cheney to Paul O’Neill The mainstream media is reporting that Fed governor Janet Yellen, a noted dove on inflation as Fed governors go, just told a gathering of bankers in Idaho that “deficits do not cause inflation” and summarily […]

Served by Jesse of Le Café Américain The New York Fed is creating an ‘investor advisory council’ and packing it with the outer circle of insiders, the banks being the In Crowd. Its nice to hear that Pimco will now have greater access to the NY Fed. Maybe the Fed would like them to explain […]

Submitted by Jesse of Le Café Américain “The banks must be restrained, and the financial system reformed, and balancerestored to the economy, before there can be any sustained recovery.” Often a closing comment from our blog, essentially this is what Robert Reich is saying in his recent essay on the economy. The median wage must […]

Served by Jesse of Le Café Américain There are three basic inputs to the market price of a product or service: 1. Level of Aggregate Supply2. Level of Aggregate Demand3. Relative Value (purchasing power) of the Medium of Exchange Let’s consider supply and demand first, since they are the most intuitively obvious. The market presents […]

Submitted by Jesse of Le Café Américain “We are out of money.” Barack Obama May 23, 2009 Obama openly says what anyone with common sense has known for quite some time: the US is broke, and will not be able to honor in full its financial and fiduciary obligations. The question remains how the US […]

Plated by Jesse of Le Café Américain The ‘fails to deliver’ statistics on debt instruments is almost as interesting, and a bit less opaque, than the naked short selling of equity instruments. A “fail to deliver” occurs when someone sells an asset such as a Treasury note to another party and then does not deliver […]

Served by Jesse of Le Café Américain The action in the SP futures market has been particularly heavy handed and blatant since the heads of the money center banks met with the Community-Organizer-in-Chief at the White House. This market is being shoved around like a gaijin granny on the Tokyo subway in rush hour. To […]

Submitted by Jesse of Le Café Américain Orwellian use of government economic statistics, par excellence. The moving average of the Non-farm Payrolls marked the downturn in the economic expansion with amazing clarity by a steep drop in late 2007. It will also mark the bottom and a sustained upturn when it arrives.