2007 August

James Grant on the Credit Crisis

James Grant has always been one of my favorite economic commentators. He always finds a way to inject a little humor as well as some razor sharp analysis. This editorial appeared in the NYT today. Here’s a sample: Benjamin Graham and David L. Dodd, in the 1940 edition of their seminal volume “Security Analysis,” held .. read more

On August 27th, 2007, posted in: Economy by

The More Things Change….

First, the mea culpa. August 8th and again last week, I predicted that the lows for this correction had been seen. Obviously, I was wrong by a few hundred Dow points. This just serves to prove that no matter how long you’ve been doing this, the future course of markets is still unpredictable. I still .. read more

On August 17th, 2007, posted in: Economy by

Market Update

The sub prime debacle continued last week as BNP Paribas, a large French bank, reported losses in some of their hedge funds. The news caused a further tightening of credit and the European Central Bank, the US Federal Reserve and the Bank of Japan all added liquidity to the market to calm things. While this .. read more

On August 13th, 2007, posted in: Economy by

China’s Nuclear Option

This ties in nicely with the entry below about Congress and their protectionist legislation. Apparently, the Chinese don’t feel the need to revalue their currency –and for good reason: they own almost $1 trillion worth of our Treasury Notes: The Chinese government has begun a concerted campaign of economic threats against the United States, hinting .. read more

On August 8th, 2007, posted in: Economy by

Train Wreck

Desmond Lachman has an article at TCS Daily that warns of the consequences of the protectionism being contemplated by Congress: Seemingly forgetful of the disastrous consequences for global prosperity of the 1930 Smoot-Hawley Tariff Act, today Congress has before it no fewer than 60 proposals to do something about the Chinese trade surplus. More ominous .. read more

On August 7th, 2007, posted in: Economy by