Hauling executives from the private sector before Congress and lambasting them about pay has had zero impact on top level compensation. However, now that the banking industry is a ward of the state and the Democrats might not just win the Presidency but also could get a filibuster-proof majority in the Senate, the banking industry […]
Read more...Barry Ritholtz at The Big Picture has sometimes taken to showing spikes in his website’s traffic around market crises. They are usually dramatic and he has said in the past that they signal short-term market bottoms. Your humble blogger has also witnessed this phenomenon. We had a huge jump in traffic around the Bear crisis, […]
Read more...Now that Greenspan has thrown in the towel, the free market ideologues have lost one of their most loyal advocates. From Bloomberg: Former Federal Reserve Chairman Alan Greenspan called for tighter regulation of financial companies, distancing himself from the free-market culture that he helped to create. Firms that bundle loans into securities for sale should […]
Read more...The blow to many Americans’ net worth via diminished home values and shrunken retirement accounts has lead to a new found insecurity and conservatism. Not only have consumers reined in spending, but they are reported to be suddenly worried about the debt levels and financial buffers. This change in sentiment is aided and abetted by […]
Read more...John Kay, in “Banks got burned by their own ‘innocent fraud’,” argues that banks got themselves and the world at large in a heap of trouble via self delusion. Had the bets embodied in their products been presented in simpler terms, they would have recognized that they were bogus and bound to lose money. But […]
Read more...I have been naive enough to have believed we live in a democracy, although the evidence contradicting that view is more obvious with every passing day. Michigan Republicans plan to challenge the eligibility of voters whose homes have been foreclosed. Talk about adding insult to injury. From Michigan Messenger (hat tip Credit Slips): The chairman […]
Read more...Steve Waldman has a great little post on how the end of the consumer credit bubble is going to expose rifts papered over by the illusion of rising living standards for all. In fact, average real wages have been stagnant since the mid-1970s; the gains in income have accrued entirely to those at the top […]
Read more...The question in the headline may seem odd, but consider. Many of the things we want are desires adeptly created by marketing and/or peer influence. It’s easy to recognize in teen agers. Cassandra brings us a more vivid example of how ideas and desires can be influenced: I was simply wondering whether all this is […]
Read more...The total surveillance society program is further along in London than in the US (the prevalence of CCTV, for instance), but it’s still a shocker to see a comment in the Financial Times, which many consider to be the best paper in the English language, advocating Newspeak. For those of you who need a refresher, […]
Read more...Off and on, usually provoked by the release of a new study, the media will turn to the question of happiness and incomes. While the Wall Street Journal has exhibited a tendency to tout research that shows that the rich are happier, the results are far less clear-cut. Once a certain income level has been […]
Read more...One of the shifts in leading edge conventional wisdom is the “cities are cool” sentiment. It’s a lagging indicator, so lagging as to set for a near-term reversal. Mind you, I like cities and particularly like not owning a car, which limits me to particularly densely populated and/or enlightened metropolises. The logic of the new-found […]
Read more...(Submitted by “Cassandra” from Cassanadra Does Tokyo) Considering our location high on the ridgeline above the steep slopes of deflation on one side and the inflationary abyss n the other, and despite our slip (in the last two weeks) seemingly towards deflation, I thought it apt to offer up some non-traditional stores of value given […]
Read more...Jim Grant, who writes and publishes Grant’s Interest Rate Observer, is a rare figure on Wall Street: extraordinarily well versed in financial history, literate, possessed with a Victorian sensibility, which is very much on display here. His essay today in the Wall Street Journal is very much worth reading (and appears to be accessible without […]
Read more...Willem Buiter has a characteristically colorful post, “Time for comrade Paulson to pull the plug on the Fannie and Freddie charade” on the prospect of a Fannie and Freddie rescue. Why is it the British can fulminate better than we Americans do? But Buiter’s beef isn’t the operation of the GSEs but the philosophy behind […]
Read more...Many foreign observers of Japan don’t get past the “lost decade/deflation” headline. They miss the fact that Japan has a robust export sector and continues to run high trade surpluses, despite the supposed difficulty of advanced economies competing with emerging markets. But how has this outcome been achieved? As Michiyo Nakamoto tells us in a […]
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