Category Archives: Economics
EUROpean financial crisis approaches
The latest German bond auction is the proverbial canary in the coal mine for world finance. The Daily Capitalist has a post worth looking at here. If the Germans cannot sell out an auction, who will buy sovereign paper from Italy, … Continue reading
Deficit panel discussions made simple
Here is why there was no deal: Senator John Kerry of Massachusetts, said lawmakers have a year before the automatic spending cuts are set to occur. “We have an election between now and then and a lot can take place,” Why would anyone … Continue reading
Who insures the insurors?
JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS), among the world’s biggest traders of credit derivatives, disclosed to shareholders that they have sold protection on more than $5 trillion of debt globally. Since they don’t have that … Continue reading
Wall Street and government
Monetarists can be excused if they keep calling for an inflation replay of the 1970′s or worse. The Fed has monetized over $2.6 Trillion thus far, see the chart below. Were it not for the incredible deflation caused by worthless … Continue reading
Gold bull confirmed
Who says the rally in gold is over? Stock brokers, insurance guys, government folks, and news people. The Chinese are voting with their money… the Financial Times reports: Chinese gold imports from Hong Kong, a proxy for the country’s overall … Continue reading
Truth about bank profits
Banks are doing very well under President Obama. The largest banks are larger than they were when Obama took office and are nearing the level of profits they were making before the depths of the financial crisis in 2008, according … Continue reading
Economics for the rest of us
Here is a short economic history of the last 40 years. Call it economics for the rest of us.
The Euro and central planning
The turmoil over eurozone governments’ excessive debt has exposed flaws in Europe’s 13-year-old monetary union that are more complicated than Greece and it’s profligate spending. It is convenient to point fingers at the Greeks, Italians, Portuguese, Irish, or Spainish, but … Continue reading