Archive for the ‘deflation’ Category
Friday, May 29th, 2009
Back in February, amidst the neo-Keynesian rage to spend our way out of recession, I argued that stimulus wouldn't stimulate. Pointing to the graph of the 10-year Treasury vs. 30-year mortgage rates I said that the government wouldn't be able to flood the market with Treasurys without driving up interest ...
Posted in debt, deflation, depression, Economy, Fed, inflation, Interest Rates | 14 Comments »
Thursday, May 14th, 2009
In an interview with Charlie Rose on Tuesday, Tim Geithner admitted the bubble was caused by Greenspan's easy money policy. Unfortunately, Charlie didn't ask the obvious follow-up: "why will this time be different? Why will Bernanke's easy money policy lead to different results?" Here was the crucial exchange:
Rose: "Looking back, ...
Posted in credit crunch, deflation, Interest Rates, treasury | 6 Comments »
Thursday, March 19th, 2009
The government has two "bazookas" aimed directly at the economic crisis: fiscal and monetary policy. Kicking off what I hope to be a regular Thursday afternoon post, I will be tracking the amount of ammunition fired from each. The monetary policy section below is a tutorial on why the Fed ...
Posted in banking, debt, deflation, Dollar, Fed, inflation, leverage | 13 Comments »
Saturday, February 21st, 2009
Three weeks ago, the positively schizophrenic Op-Ed page for the WSJ published yet another piece by a big financial brain proposing a "solution" to the financial crisis. While the editorial page itself is so rigidly ideological as to be useless, the op-ed page publishes stuff all over the map. The ...
Posted in accounting, credit crunch, debt, deflation, Economy | 17 Comments »
Sunday, February 1st, 2009
In case you haven't heard, Circuit City is going out of business:
I was in the market for a printer and luckily there's a Circuit City planted next door to a Best Buy on 5th Ave. between 43rd and 44th Streets in Manhattan. Makes comparison shopping easy.
On the left is ...
Posted in deflation, Economy | No Comments »
Thursday, January 15th, 2009
In March of 2001, to jumpstart a stagnant economy, the Bank of Japan became the first central bank to attempt "quantitative easing." Japan, of course, suffered from the collapse of its own real estate bubble in 1990. Did it work? Did it revive the economy?
Taking the Nikkei stock average as ...
Posted in banking, bubble, debt, deflation, Economy, Fed | 7 Comments »
Wednesday, December 24th, 2008
Haggling is up at the nation's retailers, according to AP (via Drudge).
If you're looking for an extra bargain before the holidays, you may only have to ask. With holiday sales shaping up to be the lowest in years, possibly the worst since the industry began annual comparisons in 1969, retailers ...
Posted in bankruptcy, credit crunch, deflation, Economy, Fed, government spending, taxpayer issues | 7 Comments »
