A recent note from Time Magazine’s blog, Swampland: This looks real bad, both for Roland Burris and his country. First a quick recap: Burris gets appointed to the Senate by Rod Blagojevich, a self-made cartoon of political ineptness and alleged corruption. The U.S. Senate won’t seat Burris until he testifies under oath that he is unblemished by the Blagojevich stain. […]Read more ›
Today’s Globe & Mail does an excellent job of presenting the three different potential outcomes for the global economy, one optimistic, one pessimistic and a third somewhere in between. Below are the key snippets of their article reflecting each of the three outcomes. However, I highly recommend reading the full article which is linked below.Read more ›
Just a few hours ago, I posted an article about European toxic asset exposure based on a Telegraph article. The crux of the Telegraph piece was that European banks have a shed load of bad debt on their books. A secret European Commission document allegedly put the exposure of the European banks to ‘toxic’ assets at £16.3 trillion, which is […]Read more ›
Now that I have burnished my bullish bona fides with two posts from the optimistic viewpoint, I want to share with you an analysis from John Mauldin that is much closer to the truth regarding where the global economy is headed, what type of bank losses we should expect and what that means about buying stocks. Warning: this is not an upbeat forecast.
John Mauldin, Best-Selling author and recognized financial expert, is also editor of the free Thoughts From the Frontline that goes to over 1 million readers each week. For more information on John or his FREE weekly economic letter go to: http://www.frontlinethoughts.com/learnmoreRead more ›
If you had read the Telegraph on February 12, you would be inclined to believe there might be even more toxic assets on European bank balance sheets than on American bank balance sheets. However, anyone who read the Telegraph later would have seen the £16.3 trillion figure magically disappear.Read more ›
With a name like “Credit Writedowns,” this site is obviously not preternaturally given to the wildly optimistic scenario. In fact, my operating assumption is to hope for the best, but plan for the worst and expect something in between. Indeed, in an economic downturn, one needs to be more fixated on planning for the worst than hoping for the best. Nevertheless, as with the last post on China, I want to present the ‘bullish’ scenario to paint a fuller picture of the potential outcomes for the global economy.Read more ›
Despite having made a number of bearish comments regarding China and its near-term outlook, I am a long-term China bull. Even over the short-term, China’s willingess to fund long-term infrastructure projects will serve as a buffer against the massive downturn in exports as the economy tries to gain more domestic consumption demand. On the whole, the government’s increasing the social safety net will spur spending by Chinese who save to meet anxiety over economic prosperity during downturns.
In that vein, I am posting some bullish comments about China by analysts at Merrill Lynch and JPMorgan Chase and other banks which Bloomberg News has picked up. While I do not see China rebounding as robustly as these analysts, I do want to present the bullish side of the picture because China may well be the first major economy to recover from the global downturn.
I have highlighted some key points in the article to consider. A link to the full post is provided below.Read more ›
Below is a clip from the World Affairs Council meeting in Oregon with Paul Krugman as keynote speaker. The clip runs 1 hour and 34 minutes. However, Krugman’s piece, which is the centerpiece starts at about 13 minutes. And runs through his ideas first before they open it up to questions. Well worth a look.Read more ›
A Glance At The Upcoming Eastern European Cataclysm – Zero Hedge Jim Rogers on Wall Street Maseratis - Tim Iacono Rio’s Chinese takeaway - smh.com.au Rescue plan for Ireland’s banks - BBC News Put Call Ratio Suggests a Market Sell Off is Coming - Wikinvest Can the improvement in the US trade balance continue? – Brad Setser Marshall Auerback: Avoiding Advice from the Financial […]Read more ›
The title of this post is fairly provocative and categorical. This is by design. For I see Obama’s banking plan as more of the same — not ‘change we can believe in.’ And we all need to be clear about the need for Obama and his team to correct their course of action. Whilst there may be plenty of other reasons to support the President, this is not one of them.Read more ›