Category Archives: Economic fundamentals

Corporate Bond Bubble Inflating?

At least in the US, a series of attention-getting stories, Sandy, then the elections, then the immediate roll right into fiscal cliff gamesmanship, followed by the Patreaus/Allen scandal, have made finance news seem comparatively dull, even though the stock market is in a swoon thanks to the engineered fiscal cliff nailbiter And Europe keeps looking more and more jaundiced by the day.

The Economist has taken note of the fact that the normally staid corporate bond market is looking a bit frothy.

Modern Money & Public Purpose: Yanis Varoufakis and Marshall Auerback on the Eurozone Crisis

One of the reasons the public knows little about economics is that most economists are lousy speakers. Part of that is their reliance on jargon, which is often shamanistic, designed to obscure rather than communicate. But the other reason is that a lot of economists don’t bother to try to be engaging.

The remarks by Yanis Varoufakis and Marshall Auerback are informative and lively, if ultimately pretty grim. The comments at YouTube are extremely positive.

Greeks Get Time but Not Money

Yves here. This post by Delusional Economics continues with his cataloguing of the slide of the Eurozone into an economic and political abyss. What is striking is the contrast between his matter of fact tone (which at this point is fully warranted, these self destructive actions have become depressingly routine) and the horror of what is happening, that millions of people are faced with desperation and are prepared to take desperate measures in retaliation.

On the Decline and (Maybe) Fall of Venture Capital

Roughly eight years ago, I had lunch with an ex-McKinsey colleague who had started a venture capital firm. His partners were raising a second fund. He was leaving. I wish I had taken notes, but his message was that the industry did not work.

Questioning Health Care Cost/Budget Fearmongering: Consumer Revolt Against Prescription Drug Costs Already Underway

As we discussed last weekend, two Federal Reserve Board economists shot gaping holes the CBO’s health care cost increase assumptions in CBO’s long term fiscal forecasts. As technical as this sounds, these long-term cost increase assumptions are the big driver of the much ballyhooed deficit explosion. And as the Fed economists’ paper discussed in considerable detail, the CBO’s assumptions on the rate of increase look indefensibly aggressive, which in turn means the hysteria about entitlements eating the economy deserves far more scrutiny than it is getting.

Some evidence on the pressures against health care cost trees growing to the sky comes in a new post by Wolf Richter.

Mr. Market Makes His Displeasure Known, and Wall Street Says it Needs Its Pony

Now even though, as Ben Walsh contends, market moves are often just noise, a downshift of over 2% in the S&P on the day after a Presidential election is being ascribed meaning by market touts, and therefore, by golly, it does mean something.

Quelle Surprise! QE Zombifies Economies

Nobody has wanted to heed the lesson of post bubble Japan until way too late.

Europe’s Extremism Gambit

By Delusional Economics, who is determined to cleanse the daily flow of vested interests propaganda to produce a balanced counterpoint. Cross posted from http://www.macrobusiness.com.au/2012/10/eggs-and-veal-at-the-eu-summit/“>MacroBusiness.

I’ve spoken previously that apart from the economic and social fallout from the European financial crisis, the other major issue I see is the loss of political capital on both sides of the economic divide.

Econ4 Discusses Jobs and Job Creation

Econ4 has released the first video in its series, The Bottom Line. This offering debunks the propaganda that tax cuts for the wealthy create jobs.

Modern American Economic History in a Few Charts

Matt Stoller is a fellow at the Roosevelt Institute. You can follow him at http://www.twitter.com/matthewstoller.

The big economic strategy for the next term of whoever is Presidenti is essentially, “turn those machines back on”. It’s fracking to replace cheap oil and a new real estate bubble in housing.

EU Summiteers Feast While Eurozone Smolders

By Delusional Economics, who is determined to cleanse the daily flow of vested interests propaganda to produce a balanced counterpoint. Cross posted from MacroBusiness.

So it’s yet another two days where the leaders of the EU get together for a dinner (this time it’s tarte, fine eggs/mushrooms, braised veal on bed of fresh spinach followed by a chocolate trio) and attempt to thrash out greater economic integration.

Quelle Surprise! Spain Shows Bank Stress Tests Living Up to Their Bad Name, Dud Loans Rise 0.6% in One Month

Bank stress tests have become a contemporary exercise in “the emperor has no clothes”. Everyone by now (or at least everyone who pays attention) knows that the stress tests are an exercise in confidence building, with emphasis on the “con”.

The Myth of Affordable Energy — Interview with Ed Dolan

In the interview Ed talks about the following:

• Why cheap energy is not vital to economic growth
• Why high oil prices aren’t necessarily a bad thing
• Why the U.S. Oil and gas boom is hurting Russia’s global influence
• Why Obama’s desire to cut oil industry tax breaks could be a great idea
• Why energy policy needs to be completely reformed
• Why Russia’s Arctic Exploration could cause the worst environmental disaster to date
• Why renewable energy investors should be very worried about the Natural gas boom
• Why the EU was flawed from the start
• Why subsidies for renewables are just plain wrong.
• Why we should give QE3 a chance
• Why abundant natural resources can bring a curse of riches

Contra the Economic Bulls: Pursued Debt Collection Amounts Increase by 8% in First Six Months of 2012

Matt Stoller is a fellow at the Roosevelt Institute. You can follow him at http://www.twitter.com/matthewstoller

The economy bulls are back at it again, claiming that all is well.

Fearless commentary on finance, economics, politics and power

Category Archives: Economic fundamentals

Corporate Bond Bubble Inflating?

Modern Money & Public Purpose: Yanis Varoufakis and Marshall Auerback on the Eurozone Crisis

Greeks Get Time but Not Money

On the Decline and (Maybe) Fall of Venture Capital

Questioning Health Care Cost/Budget Fearmongering: Consumer Revolt Against Prescription Drug Costs Already Underway

Mr. Market Makes His Displeasure Known, and Wall Street Says it Needs Its Pony

Quelle Surprise! QE Zombifies Economies

Europe’s Extremism Gambit

Econ4 Discusses Jobs and Job Creation

Modern American Economic History in a Few Charts

EU Summiteers Feast While Eurozone Smolders

Quelle Surprise! Spain Shows Bank Stress Tests Living Up to Their Bad Name, Dud Loans Rise 0.6% in One Month

The Myth of Affordable Energy — Interview with Ed Dolan

Contra the Economic Bulls: Pursued Debt Collection Amounts Increase by 8% in First Six Months of 2012

Tip Jar