Information about finance, the economy and business. Entertaining and informative. Seeking Alpha Certified Mark Sunshine Chairman & CEO

Archive: Oct 2009

  1. Hooverism Makes A Comeback In The New York Times

    Last Wednes­day the New York Times Economix Blog pub­lished an arti­cle writ­ten by Casey B. Mul­li­gan sug­gest­ing Pres­i­dent Obama should con­sider let­ting “a bank panic run its course”. While Dr. Mul­li­gan is an Eco­nom­ics Pro­fes­sor at the Uni­ver­sity of Chicago and the New York Times is one of the most respected pub­li­ca­tions in the world, […] [read full story]

    Posted in: Credit Crisis, economy, Finance, Hoover Adminstration, New York Times, Public Policy
  2. Another Big Win For Energy Economics 101: Demand Destruction Isn’t Good For New Investment

    On Mon­day the Wall Street Jour­nal ran an arti­cle that described the end of the golden era for oil refin­ers. It is a great arti­cle that, unfor­tu­nately, was pub­lished many years too late to be con­sid­ered news. Just as grav­ity is a force that brings all objects to earth, pub­lic pol­icy that destroys the demand […] [read full story]

    Posted in: economy, Energy, Finance, Oil, Politics, Public Policy
  3. Bankers Get A Big Surprise: People Without Money Can’t Pay Back Their Debts

    Con­sumer lenders that out­source their credit deci­sions to con­sumer credit rat­ing agen­cies aren’t learn­ing from past mis­takes. By now lenders should have noticed that blind reliance on credit scores doesn’t work. Even so, most lenders con­tinue to dis­re­gard good under­writ­ing fun­da­men­tals and then can’t fig­ure out why they con­tinue to have bad credit per­for­mance. It’s […] [read full story]

    Posted in: BANKS, Credit Crisis, economy, Finance, Politics, Public Policy
  4. Federal Reserve Truth in Lending Rules Needs To Go Back To Grammar School

    I have received a big response to my recent arti­cle about credit card bills and whether or not con­sumers are being over­charged. A lot of frus­trated read­ers have pri­vately e-mailed me with their own very strong over­charg­ing suspicions.

    For­tu­nately, the credit card over­charg­ing prob­lem can be fixed with sim­ple solu­tions that can be imple­mented imme­di­ately. Every day gram­mar school kids learn three basic lessons which if applied to bank credit card billing will instantly solve the prob­lem. The three lessons are…

    Show your work
    No free do overs
    What’s good for the goose is good for the gan­der. [read full story]

    Posted in: BANKS, economy, Federal Reserve, Finance, Politics, Public Policy, REGULATION, Regulatory Reform
  5. Who Owns The Derivatives Market –Industry Concentration Takes On A New Meaning

    The entire debate about the reg­u­la­tion of deriv­a­tives con­tracts takes on a new mean­ing in light of the OCC’s Quar­terly Report on Bank Trad­ing and Deriv­a­tives Activ­i­ties, Sec­ond Quar­ter 2009. The OCC (Office of the Comp­trol­ler of the Cur­rency) pub­lishes all sorts of inter­est­ing reports and hand­books that are largely over­looked by the media. And, the Deriv­a­tives Report is one of those OCC reports that almost no one seems to look at or care about. [read full story]

    Posted in: BANKS, Credit Crisis, Credit Default Swaps, Economic Statistics, Finance, Politics, Public Policy, REGULATION, Regulatory Reform
  6. And Now For Some Really Bad Economic News…(with readable charts)

    Last night I posted an arti­cle with a num­ber of charts that I got from the St. Louis Fed­eral Reserve.  Imme­di­ately, I started receiv­ing e-mails telling me that the charts weren’t read­able.   It is my fault that the charts aren’t read­able and I apol­o­gize for post­ing an arti­cle with unread­able charts.  I have attempted to […] [read full story]

    Posted in: Finance
  7. And Now For Some Really Bad Economic News…

     The U.S. econ­omy has a long way to go before the eco­nomic recov­ery will be either sus­tain­able or robust.  Mon­e­tary indi­ca­tors don’t look good and are once again get­ting worse.  I am con­cerned that the finan­cial sys­tem hasn’t recov­ered enough for the Fed­eral Reserve to with­draw from its pro­gram of quan­ti­ta­tive eas­ing.   While most of the […] [read full story]

    Posted in: BANKS, Credit Crisis, Economic Statistics, economy, Federal Reserve, Finance, Liquidity Trap, M1, M2, Monetary Policy, Money Supply, Politics, Public Policy