Money Supply and Other Economic Data Money supply as measured by seasonally adjusted M2 didn’t change much during the week ending October 16th. It was down slightly but still is holding its newly inflated levels after weeks of the Federal Reserve stimulating money supply. At least for now, shrinking real money supply, i.e., money supply going […] [read full story]
A few weeks ago I wrote that money supply was about to blast off. And, last week the data showed that the Fed was pumping money (as measured by M2 on a seasonally adjusted basis) into the system at greater than a 100% annualized rate. Well, this week we’ve reached orbit and are circling the […] [read full story]
I am glad to be doing business in the U.S. and I think that the U.S. is going to emerge from the current crisis stronger and more dominant than ever before. David Leonhardt wrote today in the New York Times that the U.S. is “a power that may not stay so super”. I disagree. A […] [read full story]
October 4, 2008, 6:02 pm Will Paulson’s Two Plans Unplug the ‘Liquidity Trap’? By Mark Sunshine Editor’s note: Mark Sunshine, president of the commercial lending institution First Capital, writes a guest post about why we may be heading into what’s called a liquidity trap. This means that monetary policy, including interest-rate changes, can’t prevent a […] [read full story]
Today I have to eat some humble pie. I was wrong in my blog over the weekend about why we didn’t need an increase in FDIC deposit insurance limits. I clearly did not understand that such an increase is a good idea because it would provide the “grease” necessary to lubricate Congress and pass the Paulson plan. […] [read full story]
Hold on tight cos I’m afraid of heights and it’s time for blast off. Money supply is on a one way ticket to the moon and we are going along for the ride. After 6 months of real money supply shrinkage, this week’s Fed release of money supply and its balance sheet points to a rapid […] [read full story]
If there’s one thing we know about U.S. recessions (and even depressions) is that although painful, they do eventually end and the markets and economy grow ever larger as a result. The spirit of democracy and capitalism (and Americanism for that matter) is one of resilience and opportunity. As we do mature as a nation, […] [read full story]
Remember when you were a kid in the playground and your buddies caught you on that spinning metal wheel? They would spin the wheel faster and faster as you grabbed the metal bars for dear life and screamed Stop! Well I for one am feeling that same nauseated feeling as I watch Treasury Secretary Paulson […] [read full story]
Almost all paths of incompetence in the current crisis run through the office of the Chairman of the SEC, Chris Cox. McCain’s solution to fire Cox isn’t tough enough. Exile is better. Fortunately for Cox this isn’t the Stalinist Soviet Union or his fate could be a lot worse. Cox’s failures are too numerous to count. […] [read full story]
OK. I admit it. Neither Ben Bernanke nor Hank Paulson looks like Smokey the Bear (although Smokey does resemble my dog, Kelly). But like firefighters trying to save the forest, the dynamic duo are feverishly trying to save the U.S. economy from an economic wildfire by drowning the crisis with liquidity. Every week I […] [read full story]
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