Archive for February, 2010

Ignoring Reality

By all accounts, the US banking crisis is over and done with. There may be a few or more than a few smaller banks that have to be shuttered but it’s mostly just mopping up at this point in time. At least that seems to be the conventional wisdom. Guy Debelle an assistant governor with [...]

Share

Let The Foreclosures Proceed

I’ve said on more than one occasion that the eventual outcome of the crises in residential and commercial real estate will end when the government either runs out of fixes that don’t work or tires of throwing good money after bad and permits the market to wash out the excess. Whether we’re at that point [...]

Share

Balanced Budgets: Kidding Ourselves

James Pethokouis has an interesting post which talks about the Ryan plan for eventually balancing the budget. The Ryan plan has some interesting ideas that rely essentially on cutting entitlement spending and replacing it with market alternatives. Ryan’s thesis is that you can get to a balanced budget without raising taxes via his plan. Pethokouis [...]

Share

Musing About The Past Week

I’ve had a bit more of an opportunity to write this week than normal so I have probably over-opined on events and should, therefore, probably just let the week end without further comment. I’ll resist that impulse a bit and offer at least some tepid thoughts and links on some events. I don’t know if [...]

Share

More On The Myth Of Restricted Bank Credit

Here’s a bit more data that would seem to indicate that the availability of bank credit is not the devil it’s made out to be. The Federal Reserve Bank of Atlanta’s Macro blog has conducted another survey of small businesses in its region and comes up with some fairly positive indications that firms in that [...]

Share

Why Can’t We Pop The Bubbles

Felix Salmon has a very smart post up today about liquidity and its role in creating bubbles. He quotes from an interview with Roy Smith a former Goldman banker: There is now about $140 trillion in market capitalization in the word’s financial markets looking for investments. That money can now move around very easily. But [...]

Share

Where Oh Where Are The Jobs?

The sugar high from the very positive ISM manufacturing report on Monday is fading fast. Blame it on the unemployment numbers. The DOL report showed initial claims increasing by 8,000 to 480,000 and the four week moving average was back up to 468,750 an increase of 11,750. By the way, the four week average has [...]

Share