tax cuts

The Einstein Stimulus Equation

By |2018-02-20T18:16:16+00:00February 20th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The housing bubble began to reverse in the middle of 2006. Strangely, Economists presented with the possibility were almost uniformly confident that it wouldn’t matter. Forgetting the market and liquidity issues, even by the middle of 2007 it was clear the end of the housing bubble had already restrained economic growth. Confidence abounded anyway, largely [...]

A (More) Rational Basis For Expectations

By |2017-12-20T12:12:11+00:00December 20th, 2017|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

With UST yields backing up a little bit after the yield curve collapsed so far so fast, the combination of tax cut and reform “stimulus” juxtaposed with the constant, non-transitory mainstream message of recovery and growth has left us with yet another BOND ROUT!!! It has been somewhat if not completely reminiscent of earlier in [...]

Getting Austerity Wrong

By |2010-06-30T15:26:50+00:00June 30th, 2010|Economy|

I wrote yesterday about the austerity debate and today David Leonhardt tackles the subject in the NYT: The world’s rich countries are now conducting a dangerous experiment. They are repeating an economic policy out of the 1930s — starting to cut spending and raise taxes before a recovery is assured — and hoping today’s situation [...]

Stimulus Package Details

By |2009-01-15T17:23:16+00:00January 15th, 2009|Economy|

Updated: 2/14  Feb. 12 - Details of the final version of the stimulus package have been released. The final price tag would come out to about $789 billion, broken down to roughly $282 billion in tax changes (I will not call them tax cuts because most of them aren't) and $507 billion in spending. What [...]

Still Blaming the Victims

By |2009-01-06T16:10:47+00:00January 6th, 2009|Economy|

As the new Obama administration prepares to enact the mother of all “stimulus” packages, it seems that some still can’t get straight what caused the current worldwide recession. Hank Paulson still believes the problem was caused by Asians saving too much: In a recent interview with the Financial Times, U.S. Treasury Secretary Hank Paulson blamed [...]