I’ve seen some commentary recently about how bad the market is, comparing it to the previous worst start to a year, 1933. That sounds ominous since everyone knows that 1933 was in the middle of the Great Depression. Unfortunately for the gloom and doom crowd, 1933 also proved to be the bottom of a bear .. read more
Paul Krugman’s editorial on oil speculators is actually technically correct, but when he says that the price of oil is supported by fundamentals, well that is to me prima facie evidence of a bubble. Krugman’s track record since he started writing for the NYT is terrible and betting against him would have been very profitable. .. read more
I wonder if Ben Bernanke will ask for do overs on the FOMC meeting yesterday. Whatever reaction he expected from the inaction and statement of continuing belief in the future moderation of inflation (a belief that at this point is akin to the belief in unicorns) I’m guessing it wasn’t a near 400 point sell .. read more
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent. Recent information indicates that overall economic activity continues to expand, partly reflecting some firming in household spending. However, labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing .. read more
Orders for durable goods were unchanged in May, as orders for airplanes and defense goods offset weaker demand for machinery and metals. Economists were expecting a decline of 1.0% for the month. It is the second straight monthly decline, but, considering orders remain unchanged since January, some economists were quickly questioning if the U.S. economy .. read more
“Well, housing prices are falling and many banks have bad loans and if prices fall much further the borrowers won’t have the money to pay the loans back.” Click on the title of the post to find the answer.
The cure for high oil prices is……high oil prices. This story from the IHT is about the boom in buidling offshore drilling rigs. Day rates have risen dramatically due to current shortages so ship builders are scrambling to build new drilling ships: As President George W. Bush considers repealing a ban on drilling off most .. read more
Senator Chris Dodd is the chairman of the Senate Banking Committee. He’s also a “friend of Mozilo” who got a special rate on his home loan. I can’t figure out for the life of me why the CEO of a mortgage company would want to provide a cut rate mortgage to the chairman of the .. read more