2009 November

Creating Jobs

The WSJ has a story about the Obama administration’s efforts to create jobs: Hamstrung by the nation’s $1.4 trillion deficit and his pledge not to raise taxes on middle-class Americans, Mr. Obama is keen to avoid any measures suggestive of a second, big-ticket stimulus. With about half of the February stimulus spending spoken for, the .. read more

Nattering Nabobs

One of the most interesting debates in economic and investing circles today concerns the mental state of investors. Are they overly optimistic about the state of the economy, buying stocks with no regard for the risks? Or are they still so shell shocked that they’re willing to pay Uncle Sam to hold their money in T Bills? Stocks .. read more

The Wisdom of Crowds

From Rasmussen: As the policy debate has unfolded in Washington this year, voters have consistently believed that tax cuts would do more than increased government spending to stimulate the economy and create jobs. Now that the nation’s unemployment rate has reached 10.2%, voters continue to hold that view. The latest Rasmussen Reports national telephone survey .. read more

Dollar and Yen as Safe Haven

Every time the dollar rises the talking heads parrot the line about the US dollar being a safe haven. The same is often heard of the Japanese yen, that when risk appetites wane, investors rush to yen and dollar assets: TORONTO (Dow Jones)–The dollar and the yen have advanced Thursday, gaining from renewed interest in .. read more

Soc Gen Worst Case Scenario

Societe Generale has two recent reports that are gaining them some publicity for their pessimistic view of the world economy. The first report is literally titled Worst Case Scenario and lays out the Bear Case in pretty stark terms (via the Telegraph): In a report entitled “Worst-case debt scenario”, the bank’s asset team said state .. read more

Bernanke Speech

Ben Bernanke spoke to the Economic Club of New York today. The full text of the speech can be found here, but I’d like to highlight the last two paragraphs: The outlook for inflation is also subject to a number of crosscurrents. Many factors affect inflation, including slack in resource utilization, inflation expectations, exchange rates, and .. read more

On November 16th, 2009, posted in: Economy by Tags:

Caroline Baum on Regulatory Reform

Carline Baum on the regulatory reform efforts of Barney Frank and Chris Dodd: Fannie and Freddie have cost the taxpayer $112 billion so far to keep them afloat, with more to come as the government assumes losses from homeowners and lenders. Yet Dodd faced the cameras last week and said the Fed had been an .. read more

Bubbles

Fredric Mishkin, former Fed governor, last week opined that all bubbles are not created equal, that only the credit variety are really damaging to the economy. The other kind of bubble – the internet, irrational exuberance variety - isn’t so bad and doesn’t do the sort of damage that the credit driven, real estate variety does. I suppose .. read more