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

Category Archive: economy

  1. GM dealers gone wild – my real life experience trying to buy a GM vehicle" rel="bookmark">GM dealers gone wild – my real life experience trying to buy a GM vehicle

    I needed to buy a new car at the end of the year. After all the news about GM, I really wanted to buy an Amer­i­can car. But try as I might, I ended up buy­ing a Japan­ese car, although I sup­pose it may have been assem­bled in the US. A bit of back­ground…. I actu­ally […] [read full story]

    Posted in: Automobile, economy, Finance, GM
  2. “Stupid is as stupid does” — the SEC and CFTC legalize electronic gambling" rel="bookmark">Stupid is as stupid does” — the SEC and CFTC legalize electronic gambling

    For­est Gump said “stu­pid is as stu­pid does” and the lat­est move by the SEC and CFTC to license clear­ing­houses for credit default swaps is about as stu­pid as it comes. Rather than ques­tion­ing the under­ly­ing eco­nomic ratio­nal and legal­ity of credit default swaps, the SEC and CFTC have decided to facil­i­tate the pro­lif­er­a­tion of […] [read full story]

    Posted in: CFTC, Credit Default Swaps, economy, Finance, Public Policy, REGULATION, SEC
  3. Money Supply And Economic Data Weekly Watch — How the Fed is Making Banks Lend

    The Fed­eral Reserve is forc­ing banks to lend or face finan­cial dis­as­ter. The Fed’s lat­est strat­egy gives banks the stark choice of lend­ing or los­ing a lot of money from oper­a­tions. Every­one knows the Fed cut its tar­get Fed­eral Funds rate to the bone this week. In a less obvi­ous move, the Fed is also […] [read full story]

    Posted in: BANKS, Bernanke, Credit Crisis, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, M1, monetary policy, Money Supply, Politics
  4. Low Oil Prices Kill Energy Investments

    Last week I pub­lished a blog arti­cle that dis­cussed energy pol­icy and sug­gested that an effec­tive energy pol­icy requires fed­er­ally estab­lished min­i­mum oil prices. Low and volatile oil prices destroy pri­vate invest­ment in energy projects because returns become too uncer­tain to attract financ­ing. As oil trades between $40 and $50 per bar­rel invest­ment capac­ity for […] [read full story]

    Posted in: economy, Energy, Finance, Oil, Politics
  5. The Target Fed Funds Rate Was Cut On December 4th – Didn’t Anyone Notice?

    The Fed­eral Reserve cut the tar­get fed­eral funds rate on Decem­ber 4th and appar­ently few peo­ple noticed. Accord­ing to data found on the New York Fed­eral Reserve Bank’s web site, begin­ning on Decem­ber 4th fed­eral funds traded on aver­age in a range from 0.20% to 0.11%. The New York Fed­eral Reserve web site states that […] [read full story]

    Posted in: Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance
  6. Money Supply And Economic Data Weekly Watch – Living in the Twilight Zone

    We’ve entered the twi­light zone. This week’s money sup­ply and eco­nomic data is sur­real. Money sup­ply is grow­ing at an unbe­liev­able pace. As mea­sured by sea­son­ally adjusted M1 and M2, the Fed announced that money sup­ply set new all time records. The quick rate of growth for money sup­ply is actu­ally accel­er­at­ing. Over the last […] [read full story]

    Posted in: Cox, Deflation, Depression, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Hoover, Inflation, M1, M2, Madoff, monetary policy, Money Supply, Public Policy, SEC
  7. Three Inconvenient Energy Policy Truths

    Pres­i­dent Elect Obama nom­i­nated his energy team yes­ter­day and empha­sized that energy pol­icy is a national pri­or­ity. Every Pres­i­dent since Jimmy Carter has talked about U.S. energy inde­pen­dence, but no Pres­i­dent has actu­ally bro­ken the U.S. addic­tion to imported oil. In the 1970s, I stud­ied energy eco­nom­ics and pol­icy and learned that man­dates, slo­gans and “feel […] [read full story]

    Posted in: economy, Energy, Finance, Obama, Oil, Politics
  8. A Letter To President Elect Obama – How to restore confidence

    Dear Pres­i­dent Elect Obama: As you get closer to inau­gu­ra­tion I would like to make a few sug­ges­tions for your admin­is­tra­tion and its future eco­nomic pol­icy. Every­one knows that the econ­omy is in trou­ble and con­fi­dence in the future is low. Con­fi­dence in the United States eco­nomic sys­tem and gov­ern­ment is our nation’s most impor­tant asset. Unfor­tu­nately, […] [read full story]

    Posted in: Accounting, BANKS, Confidence, Credit Crisis, Credit Default Swaps, Deflation, economy, Fannie Mae, FAS 140, FASB, Finance, Fiscal Policy, Freddie Mac, Mark to market accounting, Obama, Politics, Public Policy, Regulatory Reform, SEC, Securitization
  9. Really Good Analysis By A Really Smart Guy

    Paul Krug­man won the Nobel Prize for Eco­nom­ics because he is a really smart guy who often says and writes incred­i­bly insight­ful things. On Novem­ber 20th he wrote an arti­cle for the New York Review of Books titled What To Do Now that pro­vides a great frame­work for under­stand­ing the cur­rent cri­sis and what gov­ern­ment […] [read full story]

    Posted in: Depression, economy, Finance, Paul Krugman, Politics, Public Policy