Today, quite a few commentators fell in with the take of the writeup by Real Time Economics on a speech by Paul Volcker given a conference on macroprudential regulation hosted by the Federal Reserve Bank of Chicago. Its lead-in: Former Federal Reserve Chairman Paul Volcker scrapped a prepared speech he had planned to deliver at […]
Read more...In our escalating currency (really trade) dispute with China, many people argue that China holds the whip hand because it would quit buying US bonds. As we’ve explained repeatedly, that’s the last thing China would do, since stopping buying US debt (or more accurately, US dollars which it then moves into higher yielding assets than […]
Read more...A lot of commentators, including your truly, took issue with the NBER announcement that it had deemed the US economy to have exited a recession as of June 2009. I thought it might be useful to get a more nuanced reading of conditions on the ground from readers. So please weigh in: do you see […]
Read more...By Steve Keen, Associate Professor of Economics & Finance at the University of Western Sydney, and author of the book Debunking Economics, cross posted from Steve Keen’s Debt Deflation. The latest Flow of Funds release by the US Federal Reserve shows that the private sector is continuing to delever. However there are nuances in this […]
Read more...By Mike Konczal, a Roosevelt Institute fellow who posts at New Deal 2.0 Arjun Jayadev and I have another working paper out of Roosevelt Institute, this time focusing on the labor market in the current recession. The paper is: The Stagnating Labor Market (pdf). I hope you check it out; I’m going to talk about […]
Read more...A New York Times report tonight sheds some light on the debate on whether ending tax cuts for the top 2%, which is how Obama proposes to deal with the pending expiration of Bush tax cuts, will, as low tax stalwarts contend, hurt small businesses. Although my sample is anecdotal, it strongly says not, and […]
Read more...I received this query from someone we will call AK via e-mail: Was wondering if you might be help with a mental exercise I’ve been toying with the last few weeks pertaining to the roll of timeframe of consequences, and whether we will be hit with a shock or slow-burn when gravity finally kicks in. […]
Read more...This blog tends to steer away from short-term market commentary because, as the wags say, “If you must forecast, forecast often,” and keeping tabs on the whims of Mr. Market can easily become an exercise in futility. Getting a sense of conditions on the ground and likely business/economic trajectories is a fraught activity even in […]
Read more...Normally, I don’t reproduce or excerpt from John Mauldin’s popular e-newsletters, but today he features a writer I particularly like, uber bear Albert Edwards of Societe Generale. To repurpose an old saw about pessimists, bears are bulls who have all the facts. Some of Edwards’ arguments, while well documented, aren’t new: employment stinks, the forward-looking […]
Read more...By Andrew Horowitz who writes at The Disciplined Investor It is Monday and we know that means either Merger Monday, Mutual Fund Monday or even Magical Monday . Well, it was surely a big volume morning as most traders are back to their desks. As China released their production numbers along with CPI, Asian markets […]
Read more...With the fullness of time, housing prices are due to revert to something approximating the mean of their historical relationship to rental prices and incomes, albeit with an overshoot probable. But how quickly we reach that level will be very much a function of how quickly foreclosures take place and real estate is disposed of. […]
Read more...Once a Cassandra, always a Cassandra? That seems to be William White’s fate. White, the former chief economist of the Bank of International Settlements, is best known for his warnings in 2003 that many advanced economies were in the grip of housing bubbles, which Greenspan pointedly ignored. Although he is now celebrated for that call, […]
Read more...Wolfgang Munchau in the Financial Times gives a good recap as to why the recent spell of good cheer regarding the Eurozone is overdone. His central observation is that the Eurozone, like the US, patched things up with duct tape and bailing wire, and the hope was that the resumption of peppy growth would reduce […]
Read more...This is a great interview of Tom Ferguson on Real News Network on the consequences of the “head’s I win, tails you lose” the financial sector has constructed with the rest of us, with Baltimore as object lesson. Enjy!
Read more...By Marshall Auerback, a portfolio strategist and Roosevelt Institute fellow A few years ago, Chris Dialynas and I wrote a piece which introduced the concept of “renegade economics”. It was derived from a Frank D. Graham’s 1943 essay titled, “Fundamentals of International Monetary Policy.” Graham, a Princeton University economist, wrote: “In international affairs we must […]
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