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

Category Archive: Leverage

  1. 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
  2. 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
  3. FREDDIE MAC AND FANNIE MAETHE ONLY SURPRISE IS THAT ANYONE IS SURPRISED" rel="bookmark">FREDDIE MAC AND FANNIE MAETHE ONLY SURPRISE IS THAT ANYONE IS SURPRISED

    I don’t under­stand why any­one is sur­prised at the likely col­lapse of Fred­die Mac and Fan­nie Mae. It has been inevitable for a long time that they are des­tined to fail and the sooner the gov­ern­ment real­izes this inevitabil­ity the bet­ter. While Fred­die Mac and Fan­nie Mae are gen­er­ally referred to as “gov­ern­ment spon­sored enti­ties” […] [read full story]

    Posted in: BANKS, Fannie Mae, Freddie Mac, GSE, Leverage
  4. BROKERAGE FIRMSTHE BUSINESS MODEL DIED DECADES AGO WITH THE ROTARY TELEPHONE" rel="bookmark">BROKERAGE FIRMSTHE BUSINESS MODEL DIED DECADES AGO WITH THE ROTARY TELEPHONE

    Here’s a news flash for exec­u­tives at bro­ker­age firms; changes in tech­nol­ogy reduce mar­gins and make busi­ness mod­els obso­lete and the bro­ker­age indus­try doesn’t have spe­cial immu­nity from tech­nol­ogy change. Barron’s front page arti­cle on June 30 (sub­scrip­tion required) sug­gest­ing that “Wall Street does have a future – one that looks sur­pris­ingly bright…” doesn’t under­stand […] [read full story]

    Posted in: Barron's, Brokerage, Leverage
  5. MINIMUM STANDARDS FOR CEOs OF GLOBAL BANKSWHAT SHOULD THEY KNOW ABOUT LEVERAGE?" rel="bookmark">MINIMUM STANDARDS FOR CEOs OF GLOBAL BANKSWHAT SHOULD THEY KNOW ABOUT LEVERAGE?

    I have been an out­spo­ken critic of too much lever­age in the finan­cial sys­tem for the past sev­eral years. On CNBC and Fox Busi­ness Net­work I have spo­ken out against the dan­gers of bank and bro­ker­age over lever­age and sug­gested that such over lever­age could cause a repeat of the Great Depres­sion. Like a giant […] [read full story]

    Posted in: BANKS, Brokerage, Leverage, monetary policy