In late 2007 the global economy began to stumble, slipping into the abyss of a deep recession and financial panic. We are only now recovering from this stumble, in large part due to an unprecedented level of fiscal and monetary stimulus. Yet, no sooner is daylight within reach, we start attacking each other, tearing each [...]

In reading Scott Sumner’s take on the China currency peg dilemma, I see that both he and Paul Krugman hit on the fundamental problem in the debate: reserves. Everyone is talking about the peg as if relaxing the peg will be the magic bullet to America’s current account problem. But this is clearly not the [...]

Highlights
The US dollar is firmer against most major currencies. The euro, together with the Swiss franc and Swedish krona are the worst performers.  The euro failed to make a clear break above $1.38 yesterday and news reports suggesting Germany may have shifted its stance on Greece seeking IMF aid saw the euro slip back to [...]

FT.com – Asia’s inflation genie leaps out of the bottle
House prices to fall further as loan arrears rise – Independent.ie
TheMoneyIllusion » It’s China’s world, we just live in it (Krugman, round two)
More Americans live with multiple generations of family – USATODAY.com
FT.com – The weak renminbi is not just America’s problem
How [...]

News reports are now surfacing that the Germans are open to IMF involvement in the Greece sovereign debt crisis.  This is a 180-degree turn for the German finance minister who has expressed vocal opposition to the IMF’s involvement in ‘internal’ European Union affairs.
Bloomberg reports Germany making the shift to avoid being boxed in by a [...]

This is a post from John Lounsbury.
Charles J. Antonucci Sr., the former president and chief executive of the Park Avenue Bank of New York, made a desperate move to try to save his bank with the infusion of TARP funds. TARP refers to the government program to provide up to $780 billion in loans and [...]

Mortgage fraud was rampant during the housing boom. Regulators were asleep at the wheel during all of this. But now we are getting some indictments as WFAA News 8 in Dallas reports (hat tip Housing Wire). This television station did the dirty work for regulators and uncovered massive amounts of mortgage fraud.
Byron Harris reports:
News 8 [...]

I am going to talk here a little bit about the looming trade war between China and the United States. But I am going to come at it from a side angle via some historical analogies.
Common folklore in the United States says that the Soviet Empire collapsed in large part due to the efforts of [...]

Highlights
The US dollar is softer against most major currencies.  The still expansionary FOMC statement, the BoJ’s extension of Q/E overnight and the conclusion of the EU finance ministers’ meeting yesterday may have helped ease tensions.  However, the dollar was already beginning to soften ahead of these events after failing to extend gains in early March.  [...]

Lehman Brothers
Lehman Hid Money With Help of Global Rules – DealBook Blog – NYTimes.com
The Lehman Report: Is It Time for a Special Prosecutor?: Rational Irrationality : The New Yorker
Lehman: Regulators Chose to Deny, Extend and Pretend « naked capitalism
Another Disturbing Finding in Lehman Bros. Report | The Huffington Post Investigative Fund
The [...]