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

Category Archive: Great Depression

  1. Mark-To-Market Accounting – The Boogeyman Of The 1930s Is Back

    I won­der how many peo­ple real­ize that that FDR got rid of mark-to-market account­ing in 1938 after it vir­tu­ally destroyed the bank­ing sec­tor. Accord­ing to Brian Wes­bury and Robert Stein mark-to-market account­ing was the law of the land for most of the Great Depres­sion until it was out­lawed by FDR in 1938. Wes­bury and Stein […] [read full story]

    Posted in: BANKS, Credit Crisis, Depression, economy, FASB, FDR, Finance, Great Depression, Mark to market accounting, Public Policy
  2. The Wall Street Journal Is Wrong To Underplay Deflation

    Today’s Wall Street Jour­nal Heard On The Street col­umn said that the “air maybe going out of the defla­tion risk”. The arti­cle states “…his­tory shows how quickly defla­tion can give way to infla­tion. Paul Kas­riel, direc­tor of eco­nomic research at North­ern Trust notes that in 1933, the U.S. suf­fered severe defla­tion, yet the fol­low­ing year […] [read full story]

    Posted in: Deflation, Economic Statistics, Finance, Great Depression, Inflation, Paul Kasriel, Wall Street Journal
  3. Money Supply And Economic Data Weekly Watch – Reprint of A New York Times Economix Blog Post

    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]

    Posted in: BANKS, Deflation, Economic Statistics, economy, Finance, Fiscal Policy, GDP, Great Depression, Liquidity Trap, M2, monetary policy, Money Supply, Paulson, Tax policy, Wachovia, Wells Fargo
  4. Money Supply and Economic Data Weekly Watch – Smokey the Bear Says, “If you start a fire, put it out. Only you can prevent wildfires.”

      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]

    Posted in: BANKS, Bernanke, Credit Crisis, Deflation, Economic Statistics, economy, Fannie Mae, Federal Funds Rate, Federal Reserve, Finance, FOX BUSINESS NETWORK, Freddie Mac, Great Depression, Inflation, M1, M2, monetary policy, Money Supply, Paulson
  5. SOUNDS LIKE A HOOVER ADMINISTRATION ECONOMIST PRESENTED AT LAST WEEK’S FED CONFERENCE" rel="bookmark">SOUNDS LIKE A HOOVER ADMINISTRATION ECONOMIST PRESENTED AT LAST WEEK’S FED CONFERENCE

    Some of the head­lines from last week’s Fed­eral Reserve con­fer­ence sounded like they were writ­ten in the 1930’s when the Hoover Admin­is­tra­tion encour­aged liq­ui­da­tion of assets and banks as a way to fix the econ­omy. Willem Buiter, a for­mer offi­cial of the Bank of Eng­land and Euro­pean Bank for Recon­struc­tion and Devel­op­ment, sounded like Andrew […] [read full story]

    Posted in: Andrew Mellon, BANKS, Bernanke, Bush Administration, Credit Crisis, Federal Funds Rate, Federal Reserve, Finance, Great Depression, Hoover Adminstration, housing crisis, monetary policy, Money Supply, Willem Buiter
  6. INFLATION, FED POLICY AND THE LIQUIDITY TRAPTHERE’S STILL TIME!" rel="bookmark">INFLATION, FED POLICY AND THE LIQUIDITY TRAPTHERE’S STILL TIME!

    While many believe that Fed­eral Reserve pol­icy over the past year has been infla­tion­ary, there is clear evi­dence that money sup­ply is falling in real terms and there is a strong mon­e­tary bias to defla­tion and GDP shrink­age.  In Feb­ru­ary, 2008 I was on FOX Busi­ness Net­work and dis­cussed the impli­ca­tions of delever­ag­ing the finan­cial sys­tem […] [read full story]

    Posted in: BANKS, Credit Crisis, Deflation, Federal Reserve, FOX BUSINESS NETWORK, Great Depression, Inflation, Leverage, monetary policy, Money Supply