Submitted by Leo Kolivakis, publisher of Pension Pulse. I am going to follow-up on my previous post on the perils of linear projections by posting Jonathan Nitzan and Shimshon Bichler’s paper Contours of Crisis III: Systemic Fear and Forward-Looking Finance: This is the third installment in our series about the current crisis. The first article […]
Read more...Submitted by DoctoRx, who comments on the economic and financial scenes at EconBlog Review: In thinking about Animal Spirits, I am reminded of Spencer Tracy’s comment about Katharine Hepburn in Pat and Mike: “Not much meat on her, but what’s there is cherce.” There’s not much meat on the bones of Animal Spirits, and what’s […]
Read more...Six Flags Files for Bankruptcy DealBook Blog – NYTimes.com Next, the Retirement Bubble Barrons. The coming generational storm is going to hit the U.S. as it already has countries like Japan, Germany and Italy. This article offers a potential solution for individual retirees. Paul Krugman’s fear for lost decade Will Hutton, Guardian North Korea responds […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. The chain of events whereby easy money leads to malinvestment that impoverishes a society is now fully manifest in the United States. You remember Victorville, CA where new homes were being demolished because it cost more to maintain them than to demolish them? (see post here) […]
Read more...Joe Nocera of the New York Times has a good piece today on the Obama executive pay proposals, such that they are. While I have sometimes been hard on Nocera for taking positions that I have found to be a bit too forgiving to the financial services industry, today he gave an articulate rendition of […]
Read more...Submitted by Leo Kolivakis, publisher of Pension Pulse. This past Thursday evening I attended the annual forecast dinner of the Montreal CFA Society. I typically avoid these events but I enjoyed meeting some former colleagues and spending time with my new co-workers. The event was moderated by Jean-Luc Landry, President of Landry Morin, and the […]
Read more...Reflektionen von Nassim N. Taleb und Daniel Kahneman zur Finanzkrise Blick Log. Taleb and Kahnemann together in one place. 60 minute video clip Chart of the week: Roubini and the VIX Felix Salmon Deflation v. Inflation Sudden Debt. Forget the math here. This article makes the point that asset prices have declined while debts have […]
Read more...Rob Parenteau, CFA, is sole propreitor of MacroStrategy Edge, editor of the Richebacher Letter, and a research assistant with the Levy Institute of Economics Retail sales remained fairly stable from January through May in dollar level terms. That is generally not what a debt deflation looks like, nor is it what a recovery looks like. […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman has a good piece out today highlighting the differing economic policy agendas of the BRIC group (Brazil, Russia, India and China). In it he suggests CRIBS is a more appropriate moniker for the group as […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. “In many ways the effect of the crash on embezzlement was more significant than on suicide. To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter. Weeks, months, or years may elapse between the […]
Read more...Submitted by Leo Kolivakis, publisher of Pension Pulse. The Guardian recently ran a story, When hedge funds lose their mojo: We’re not quite there yet, but hedge fund managers may soon need to start giving away toasters — or perhaps plasma TVs — to woo new investors. Forcing the funds to eat a little humble […]
Read more...I am beginning to feel as if I am being gaslighted. For those not familiar with the reference. Gas Light was a 1930s play in which a scheming husband keeps turning the gas lights in his house up and down, then keeps telling his wife that she is crazy when she comments on the changes. […]
Read more...Edward Harrison here with another edition of the links plus the antidote du jour. Two Ways to Deleverage an Economy Bill Bonner Stand By Me: Banks’ exposure to eastern Europe The Economist Terror Names Linked To Doomed Flight AF 447 Sky News (This story does not seem to be getting any media play as far […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. During the last generation, the economics profession has veered toward a ‘science’ model of economics and finance. The intellectual underpinnings for this development began with the Efficient Market Hypothesis (EMH) and has continued in no small measure due to what is often termed ‘University of Chicago […]
Read more...Submitted by Rolfe Winkler, publisher of OptionARMageddon So much for de-leveraging…The Fed published its latest Flow of Funds report today. One key takeaway: While total debt is growing more slowly, it is still growing. Since Q3 ’08 households have cut their debt (slightly), but the federal government is borrowing so rapidly, overall debt continues to […]
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