Washington politicians are pointing the U.S. economy straight into a liquidity trap and instead of a bright economic future, the U.S. is looking at years of high unemployment, weak GDP growth and the possibility of widespread deflation. [read full story]
Despite the quick run up in gasoline prices, the U.S. economy isn’t about to be eaten by the inflation monster. While it is a good bet that sometime in the next few years the Fed will have to deal with rising inflation, now isn’t the time to change monetary policy in an effort to slay […] [read full story]
There is a lot of speculation that the dollar is losing ground to the Chinese renminbi and that sooner or later the Fed will share the global stage with Chinese monetary authorities. Chinese government officials and Jeremiad western economic forecasters who claim that the renminbi will replace the dollar as the world’s premier currency certainly […] [read full story]
Today Catherine Rampell of the New York Times authored a story in the Week in Review that quoted an economist who stated there are “as many views of the economy going forward as you have letters of the alphabet to describe the recovery”. I was disappointed by the article because rather than focusing on the […] [read full story]
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]
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]
OK…I confess…James Sunshine is my son. He is a freshman at Emory University and wrote the below op/ed for the Emory Wheel. Of course I am very proud of his work. He says that he writes better than his Dad and that he is smarter. What do you think? He may be right!! As the national […] [read full story]
Almost every day I am asked about the economic recovery and whether or not it is sustainable. People ask because there is a constant barrage of economic predictions by economists that pretend that they know what will happen in the future even thought they still can’t figure out what happened in the past. Listening to economists […] [read full story]
Conventional wisdom is that the Fed’s printing presses are running overtime and the economy is awash with liquidity. Just yesterday the National Association for Business Economics reported that almost half the economists they surveyed believed that Federal Reserve Policy is inflationary. Too bad the NABE surveyed economists and conventional wisdom are wrong. Economists, pundits and journalists […] [read full story]
What if conventional wisdom about the Fed is wrong and it isn’t printing money like a drunken sailor? Well…that would make most of the media coverage of the bond market and the economy wildly off the mark. As it turns out while media talking heads were ranting about how the Fed was running their printing presses […] [read full story]
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