The Sunshine Report

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

Category Archive: Wall Street Journal

  1. The Wall Street Journal Is Wrong To Underplay Deflation

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    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

  2. Credit Default Swaps Are Going To Annihilate Main Street

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    War­ren Buf­fet called credit default swaps “weapons of finan­cial mass destruc­tion” and they are about to anni­hi­late Main Street.  In a dis­turb­ing new trend, money cen­ter banks are “weaponiz­ing” credit default swaps (“CDS”) by using the trad­ing price of a borrower’s CDS to adjust the borrower’s inter­est rate.  Unfor­tu­nately, banks don’t under­stand that they are […] [read full story]

    Posted in: BANKS, Credit Crisis, Credit Default Swaps, Finance, Wall Street Journal

  3. LIBOR NEEDS TO BE DUMPED NOW" rel="bookmark">LIBOR NEEDS TO BE DUMPED NOW

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    I am a critic of LIBOR’s use as a US bench­mark inter­est rate. With more than $350 tril­lion of out­stand­ing LIBOR indexed debt, a small error in LIBOR has a mas­sive dis­tort­ing effect on col­lec­tive bor­rower inter­est expense. US bor­row­ers are being over­charged because LIBOR over­states what it is intended to mea­sure. LIBOR has two […] [read full story]

    Posted in: BANKS, Federal Funds Rate, Finance, LIBOR, Wall Street Journal