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

Category Archive: economy

  1. CPI Indicates" rel="bookmark">Money Supply and Economic Data Weekly Watch – Deflation Is Worse Than CPI Indicates

    Last week’s eco­nomic data is under­es­ti­mat­ing defla­tion. On Wednes­day the Bureau of Labor Sta­tis­tics (“BLS”) announced that the con­sumer price index (“CPI”) declined by 1.0% in Octo­ber which was the biggest sin­gle one month reported decline since before World War II. Broad based defla­tion exac­er­bates the already severe credit cri­sis and increases cash hoard­ing by […] [read full story]

    Posted in: BANKS, BLS, Business Environment, CPI, Credit Crisis, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, GDP, Inflation, Liquidity Trap, M2, monetary policy, Money Supply
  2. Why Hasn’t Treasury Worked Out A Program For Resolution of Non-Bank Financial Institutions?

    I don’t under­stand why Trea­sury hasn’t put in place a com­pre­hen­sive plan for the res­o­lu­tion of failed non-bank finan­cial insti­tu­tions. Paul­son and Bernanke said that they were work­ing on a pro­posal after the Bear Stearns col­lapse and that a frame­work for res­o­lu­tion of non-bank finan­cial fail­ures was needed imme­di­ately. But 8 months later the world […] [read full story]

    Posted in: BANKS, Bernanke, Business Environment, Credit Crisis, Economic Statistics, economy, Finance, Paulson, Politics, Regulatory Reform, Willem Buiter
  3. The Argument For A New Fiscal Stimulus Bill

    I believe that another fis­cal stim­u­lus bill is going to be passed by Con­gress and signed into law by either Pres­i­dent Bush or Pres­i­dent Obama (obvi­ously after his inau­gu­ra­tion). Fis­cal stim­u­lus is the most likely way that the gov­ern­ment will be able to stop the rapid decline of the econ­omy caused by the hoard­ing of […] [read full story]

    Posted in: Credit Crisis, Economic Statistics, economy, Finance, Fiscal Policy, Politics, Robert Reich
  4. Money Supply and Economic Data Weekly Watch – It’s A Brave New World For Federal Funds

    It’s a brave new world for Fed­eral Funds. The actual rate that Fed­eral Funds were trad­ing at last week was 0.23% despite the Tar­get Fed­eral Funds Rate being 1.00%. This anom­aly could be sig­nal­ing the end of the era when Fed­eral Reserve pol­icy is expressed in a sin­gle num­ber, the Tar­get Fed­eral Funds Rate. Tech­ni­cal […] [read full story]

    Posted in: BANKS, Bernanke, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, LIBOR, M2, monetary policy, Money Supply
  5. LIBOR, Psychology and Market Disruption Clauses In Legal Contracts – A Milbank Tweed Client Alert by Richard M. Gray" rel="bookmark">LIBOR, Psychology and Market Disruption Clauses In Legal Contracts – A Milbank Tweed Client Alert by Richard M. Gray

    This week I received a “client alert” from the law firm of Mil­bank, Tweed, Hadley & McCloy about LIBOR. Richard Gray is a Mil­bank Part­ner and is the author of the client alert. He dis­cusses LIBOR and the issues posed by the dis­par­ity between the pub­licly quoted LIBOR rate and the actual rates on Eurodol­lar […] [read full story]

    Posted in: British Bankers Association, Credit Crisis, economy, Finance, LIBOR, Market Distruption Clause, Milbank Tweed, Richard Gray
  6. Too Bad The Grinch Already Stole Christmas!!

    Too bad Christ­mas has already been stolen by the Grinch. Christ­mas sales of dis­cre­tionary items such as apparel, elec­tron­ics, fur­ni­ture and other soft goods are going to be down regard­less of whether or not con­sumer con­fi­dence is restored in the next month. The rea­son for my down­beat pre­dic­tion of Christ­mas sales is orders for dis­cre­tionary […] [read full story]

    Posted in: Economic Statistics, economy, Finance, Retail Sales
  7. Money Supply and Economic Data Weekly Watch – The Next Crisis Is On The Horizon

    Even while the Fed and Trea­sury are fight­ing defla­tion and a seri­ous reces­sion, they are lay­ing the ground work for a new liq­uid­ity bub­ble with the poten­tial for dev­as­tat­ingly high infla­tion. While the cur­rent news is dom­i­nated by reces­sion­ary GDP, falling con­sumer con­fi­dence, bank­ing res­cues, incred­i­ble stock mar­ket volatil­ity and frozen short term money mar­kets, […] [read full story]

    Posted in: BANKS, Bernanke, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, FOX BUSINESS NETWORK, Inflation, Leverage, Liquidity Trap, M2, monetary policy, Money Supply, REGULATION, Treasury
  8. I discovered a natural cure for low blood pressure – go to a securitization convention and try not to lose your mind

    Ear­lier this week I dis­cov­ered a nat­ural cure for low blood pres­sure when I attended a con­fer­ence for secu­ri­ti­za­tion and struc­tured finance pro­fes­sion­als. For those read­ers who have been in a coma for the last 15 months, it is the secu­ri­ti­za­tion and struc­tured finance pro­fes­sion­als who pimped the cap­i­tal mar­kets and destroyed the global econ­omy. […] [read full story]

    Posted in: CDO, CLO, Confidence, Credit Crisis, economy, Finance, Securitization
  9. Money Supply And Economic Data Weekly Watch – Lots of bad news while money supply hits a new all time high

    Money Sup­ply The Fed is back at it again; its push­ing money sup­ply as it tries to rein­flate the econ­omy. Money sup­ply, as mea­sured by sea­son­ally adjusted M2, hit a new all time high of $7,870.4 bil­lion and on a non-seasonally adjusted basis rose to $7,867.5 bil­lion. How­ever, because the global econ­omy is stuck in […] [read full story]

    Posted in: BANKS, Bernanke, Credit Crisis, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, GDP, Inflation, Liquidity Trap, M2, monetary policy, Money Supply
  10. Regulatory Reform is Needed Now To Prevent The Next Bubble and Crisis

    Like a pet ger­bil run­ning end­lessly on a cir­cu­lar wheel, Gov­ern­ment lead­ers are putting all of us on the eco­nomic tread­mill of ser­ial fail­ure. Calls for an imme­di­ate inves­ti­ga­tion into what went wrong and why are going largely unheeded as gov­ern­ment lead­ers claim that a witch hunt is the last thing we need now. Well, I […] [read full story]

    Posted in: Bernanke, Bush Administration, Chris Cox, Credit Crisis, economy, FDR, Finance, Fiscal Policy, McCain, Obama, Paulson, SEC