Category Archives: Economic fundamentals

“In the Eye of the Storm: Updating the Economics of Global Turbulence”

Normally I relegate items that I deem important, but to which I have comparatively little to add, to Links and label as “Today’s Must Read.” Even thought this offering falls into that general category, it is far and away the most important “Must Read” I can recall coming across, and so I am highlighting it […]

Guest Post: Questions for Bernanke’s Senate Confirmation Hearing

The Senate Banking Committee will be chatting with Ben Bernanke this Thursday to vote on his reappointment. Demand that the Committee ask the following questions for our esteemed Esteemed Chairman (and contact your own Senators also and demand that they find out the answers to the following questions). If you are a Senate aide, please […]

Buiter has concerns other than Dubai, warns of sovereign debt delusion

By Edward Harrison of Credit Writedowns Willem Buiter has just taken on a new role at Citi. The news of Willem Buiter’s role as Chief Economist at Citigroup comes via DealBook at the New York Times below. Afterward, I have some comments about Dubai contextualizing Yves’ recent post detailing a reluctance by the government to […]

Guest Post: The Tax Code ENCOURAGES Leverage

Among the most prophetic voices prior to the economic crash was UCLA economics professor Harold H. Somers, who warned in 1991 that revisions to the tax code would increase leverage, which could lead to economic disaster: The result is to tilt the well-worn playing field even more in favor of leveraging, leading to the possibility […]

I Love the Smell of Napalm in the Morning

For the record, I actually do NOT like it when markets fall apart, even when I anticipate it and am correctly positioned for it (2007 and 2008). It’s very upsetting to watch. Every savvy investor I know has been expecting a mild to meaningful correction. So independent of its seriousness, the Dubai World frisson could […]

Guest Post: Instead of Fixing the U.S. Economy or Creating Jobs for AMERICANS, Obama Will Spend The Money in Afghanistan and Iraq

America is in the most severe unemployment crisis since – and perhaps including – the Great Depression. And yet Obama, like Bush, has done virtually nothing to create more jobs. Instead, they both gave trillions to the biggest banks (who are not loaning it out to the little guy) and for waging wars in Afghanistan […]

A few thoughts about the limitations of government

By Edward Harrison of Credit Writedowns. In this post: A few thoughts about the limitations of government Our founding fathers How large should government be? How policy helps frame the debate Where we are headed In a recent post, “Stop the madness now!” I voiced my growing concern with the direction in which the country […]

Obama: Debt could cause a double dip recession

By Edward Harrison of Credit Writedowns Barack Obama has now come clean about his thinking on why his administration has decided to focus first on reducing the deficit and next on jobs. He fears a double-dip recession will occur if foreigners lose confidence in the U.S. dollar, causing interest rates to spike. This is nonsense […]

Guest Post: “War ALWAYS Causes Recession”

By George Washington of Washington’s Blog. PhD economist Marc Faber predicts that the U.S. will launch a war to distract people from the bad economy. China’s largest media outlet – Sohu.com – wrote in October 2008 that the Rand corporation, a leading U.S. military advisor, lobbied the Pentagon for a war to be started with […]

“President Obama, deficit terrorism is not the answer!”

By Marshall Auerback, a fund manager and investment strategist who writes for New Deal 2.0. Oh dear, there he goes again. After sensibly calling for a jobs summit to deal with the problem of rising unemployment, President Obama’s Herbert Hoover-like alter ego has re-emerged again to warn us again about the evils of government deficit […]

Guest Post: Military Spending is INCREASING Unemployment and REDUCING Economic Growth

By George Washington of Washington’s Blog. I have written extensively on the fact that this is not a normal cyclical recession, and we’re not in the type of “jobless recovery” which we’ve had a couple of times in the last 50 years. Unemployment will continue rising in America for some time, which will make a […]

If the Fed is looking to inflate away problems, what should Asia do?

By Edward Harrison of Credit Writedowns I would be especially interested to hear the views of NC’s Asian readers on this post because Japan and China are usually considered antagonists with a long and sordid past. Andy Xie thinks the Fed is on an inflationary path. Last month, he wrote an article in Caijing which […]

Guest Post: One Reason that the Stock Market is Rising While Unemployment is Soaring

By George Washington of Washington’s Blog . Daniel Gross points out that part of the reason that the American stock markets are going up even though unemployment is rising and the real economy suffering is because multinational corporations headquartered in the U.S. are experiencing strong sales abroad: Here’s a puzzle: The stock markets are doing […]

Frank Veneroso: Employment Losses Probably Continue at a 300,000 a Month Rate

From Veneroso Associates’ US Economy October Employment Report, ” Huge Discrepancy Between the Payroll and Household Surveys: Executive Summary 1. According to BLS, payrolls fell at a 188,000 a month rate over the last three months. But their own household survey says employment fell at a 589,000 a month rate. 2. Why the discrepancy? 3. […]