Credit Writedowns » asset-based economy

Rickards on Iran and QE3

Edward Harrison — Thu, 09 Feb 2012 18:47:20 +0000

Jim Rickards, author of Currency Wars, was on capital Account last night and he thinks both QE3 and war with Iran are distinct possibilities. Take a look

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Rickards on Iran and QE3 originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Doug Casey on the Coming War with Iran 2 Feb 2012
Is Iran About to Get Hot? 6 Nov 2011
Israel: “The possibility of a military attack against Iran is closer than the diplomatic option” 6 Nov 2011

Economics in the Age of Deleveraging

Guest Author — Wed, 01 Feb 2012 16:00:05 +0000

Clearly, economic policy is now far more complex than it appeared to be before the GFC. As we enter this Age of Deleveraging, the worst thing we can do is apply policies that appeared to work during the preceding Age of Leverage—but were in fact predicated on ever-rising private sector indebtedness. Politicians should be sceptical of conventional economic advice at this time; it would be much wiser to study the history of the 1930s instead

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Economics in the Age of Deleveraging originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Deleveraging Will Continue Apace 16 Jul 2010
Consumer credit down, but does it show deleveraging? 7 Nov 2009
Data on past consumer deleveraging during recessions 9 Oct 2009

Banking Wasn’t Meant to Be Like This

Michael Hudson — Mon, 30 Jan 2012 02:00:36 +0000

the banks now browbeat governments – not by having ready cash but by threatening to go bust and drag the economy down with them if they are not given control of public tax policy, spending and planning. The process has gone furthest in the United States. Joseph Stiglitz characterizes the Obama administration’s vast transfer of money and pubic debt to the banks as a “privatizing of gains and the socializing of losses. It is a ‘partnership’ in which one partner robs the other.” Prof. Bill Black describes banks as becoming criminogenic and innovating “control fraud.” High finance has corrupted regulatory agencies, falsified account-keeping by “mark to model” trickery, and financed the campaigns of its supporters to disable public oversight. The effect is to leave banks in control of how the economy’s allocates its credit and resources

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Banking Wasn’t Meant to Be Like This originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

The EU driving changes in European banking 2 Nov 2009
The Eurozone and the spectre of banking collapse 19 Jan 2009
More on the self-regulatory banking saga, SEC version 13 Jan 2012

Markets Vanish – “In a Flash”

Frederick Sheehan — Sun, 08 Jan 2012 23:49:57 +0000

Government interference extends unstable market conditions longer than would otherwise be true. By doing so, George Eliot's observation (at the bottom, here) is even more appropriate in

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Markets Vanish – “In a Flash” originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Markets Vanish – In a Flash 4 Jan 2011

Steve Keen on HARDtalk on the financial crisis and the economy

Edward Harrison — Mon, 28 Nov 2011 02:00:55 +0000

This time it's Steve Keen on the hotseat on HARDtalk. Now, Steve is one of the few economists who actually predicted the global financial crisis. But what about the possibility of another Great Depression? That possibility and how to avoid it were the topics of conversation in this 25-minute interview. Great stuff

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Steve Keen on HARDtalk on the financial crisis and the economy originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Steve Keen: Debt and the economy – how do we pay for all of this? 18 Nov 2009
Steve Keen and the spectre of terminal debt 15 Sep 2009
Steve Keen on a Double Dip and Private Debt 26 May 2011

Juergen Stark explains ECB opposition to monetisation is not about inflation

Edward Harrison — Sun, 27 Nov 2011 00:30:39 +0000

As I have been saying at Credit Writedowns, the ECB’s opposition to monetising sovereign debt is not about inflation concerns but rather its resistance to moving into a politicised quasi-fiscal role

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Juergen Stark explains ECB opposition to monetisation is not about inflation originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Fight Over Budget, Opposition Balks at Financing: Not US 1 Mar 2011
On Central Banker opposition to a Greek restructuring 15 Jun 2011
Rogoff sees ECB monetisation followed by recapitalisation or seigniorage and currency depreciation 3 Nov 2011

Debt Deflation on the rise

Michael Hudson — Sun, 20 Nov 2011 02:00:53 +0000

“Without consumption, markets are going to shrink. Companies won’t invest, stores will close, “for rent” signs will spread on the main streets and local tax revenues will fall. Companies will lay off their employees and the economy will shrink more. Why aren’t economists talking about these effects of debt deflation, which are becoming the distinguishing phenomenon of our time? They advocate giving more money to the banks, hoping that somehow everything will be okay, as if the banks would lend out the money to fund new production and employment. Mainstream economics and political leaders in both parties are failing to ask why the banks are using these giveaways to speculate abroad, pay their managers bonuses and high salaries or to pay dividends rather than to lend to small businesses or do other things to actually get the economy moving again. This phenomenon cannot be explained without seeing that debt service is siphoning off revenue into the financial sector, which is not recycling it back into the production-and-consumption economy.”

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Debt Deflation on the rise originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Deflation in action 5 Dec 2008
Ireland gets deflation 14 May 2009
Deflation, Reflation, Inflation 26 Oct 2010

Manufacturing inflation in a wage deflationary environment

Edward Harrison — Mon, 10 Oct 2011 14:00:32 +0000

How does manufacturing CPI inflation benefit an economy in which incomes are falling? When inflation rises and incomes are stagnant or falling, the economy rolls over

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Manufacturing inflation in a wage deflationary environment originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Rosenberg: Seven Investment Strategies For A Deflationary Environment 22 Sep 2010
China: rebalancing through wage increases 15 May 2011
Chart of the Day: Eurozone wage growth, pre-crisis 20 Sep 2011

Goldilocks, the Crash, and the Perfect Fiscal Storm

Randall Wray — Wed, 22 Jun 2011 12:50:25 +0000

Randall Wray revisits the Clintonian Goldilocks economy to find the seeds of the Global Financial Crisis, using the sectoral balance approach

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Goldilocks, the Crash, and the Perfect Fiscal Storm originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Currency crisis is gathering storm 25 Oct 2008
Another Perfect Recession Indicator 8 Jun 2008
Spain is the perfect example of a country that never should have joined the euro zone 16 May 2010

What are the differences between QE1, QE2 and QE3?

Edward Harrison — Mon, 20 Jun 2011 14:00:26 +0000

Last week, when discussing what QE3 could look like I indicated that were the Federal Reserve to start expanding its balance sheet, QE3 will see interest rate caps after a pause and period of reflection. Let me address the differences between the various QEs here to illustrate why interest rate caps are being contemplated

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
What are the differences between QE1, QE2 and QE3? originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts No related posts.

Roach: Return of the Living Dead

Edward Harrison — Thu, 16 Jun 2011 13:47:35 +0000

Rather than adding stimulus with the aim of goosing demand to help the economy reach escape velocity, I would say that the central objective of economic policy is to help the economy reach full employment. Doing so will increase demand, increase output, and cut budget deficits tremendously. Policy makers should do this while aiding the economy in reallocating scarce resources to areas that will sustain longer-term productivity growth. In America, that means less resources in finance and housing and perhaps more in technology and infrastructure

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Roach: Return of the Living Dead originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Roach: “Liquidity is seeking return” 22 Jul 2009
Grantham: Night of The Living Fed 26 Oct 2010
Minack: If fiscal policy is dead, what does that mean for risk assets? 20 Aug 2010

Limits of Monetary Policy

Marc Chandler — Mon, 13 Jun 2011 14:00:03 +0000

In this column, Marc Chandler argues that US monetary policy can be a powerful tool, but it has limitations. Some commodity prices have risen and some have fallen since the Federal Reserve signaled QEII. The anticipation of QEII did weigh on the dollar, but against some of the leading major currencies, the dollar was little changed net-net until the ECB shifted its monetary stance

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Limits of Monetary Policy originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Unconventional Monetary Policy and Central Bank Communications 27 Feb 2011
US monetary policy and the saving glut 23 Mar 2011
Concerns Over Monetary Policy And Other Links 9 Jul 2010

The jobs crisis is not just about demand

Edward Harrison — Mon, 13 Jun 2011 12:30:45 +0000

If the US wants job growth, it will need to reduce private sector debt levels - and that takes time. The government can act a a counterweight to the demand drag but I am very sceptical of claims like Summers’ that doing so would solve a jobs crisis borne out of a debt crisis

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
The jobs crisis is not just about demand originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

The choice is between increasing or decreasing aggregate demand 28 Oct 2009
Speculators at risk as IEA confirms demand destruction has set in 12 May 2011
Why aren’t we using monetary policy to stimulate aggregate demand? 19 Sep 2010

Gundlach: “It’s very difficult to move forward with a debt-based economic scheme”

Edward Harrison — Fri, 10 Jun 2011 14:22:41 +0000

Jeffrey Gundlach spoke with Joe Weisenthal of Business Insider in an exclusive interview which they recently carried on their site. Gundlach believes that the economy is “a low-performance mode” that makes the unemployment overhang difficult to solve. In his view, there is “deflation risk in the economy at times when the government isn’t stimulating.”

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Gundlach: “It’s very difficult to move forward with a debt-based economic scheme” originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

A brief look at the Asset-Based Economy at economic turns 7 Oct 2009
Gundlach on another crisis: “How much currency do you have?” 31 May 2011
Dilbert on the asset-based economy 4 Oct 2009

Sidelights to 1994

Frederick Sheehan — Mon, 02 May 2011 17:30:49 +0000

LURING THE UNSOPHISTICATED into the stock market was considered a risk by Federal Reserve Chairman Alan Greenspan in 1994. So much so, that protecting the individual investor was a mandate of the Fed. (The Fed advertises and then omits new mandates faster than spring fashions. My favorite is the brainstorm of former Fed governor Frederic Mishkin in 2007: "The modern science of monetary policy proceeds under the assumption that the central bank's purpose is to maximize the well-being of households in the economy; the objective function specifies exactly what should be maximized.") On May 27, 1994, Greenspan told the Senate Banking Committee it was for this very reason that he - his FOMC - had started raising rates in February, 1994: "Lured by consistently high returns in capital markets, people exhibited increasingly a willingness to take on market risk by extending the maturity of their investments." The People had shifted assets out of bank deposits and the like. The avuncular Fed chairman, by raising rates, was shepherding his sheep: "[S]ome of those buying the funds perhaps did not fully appreciate the exposure of their new investments to the usual fluctuations in bond and stock prices." Given this acknowledgement, the Fed later violated its Investor Protection Mandate when it did not raise margin requirements: a means to reduce credit to the stock market, but, as much so, a warning of forbearance to those who do "not fully appreciate the exposure of their new investments." The Federal Reserve has absolute authority to raise margin requirements at any time. The Dow rose from 3,757 on May 27, 1994 to over 11,000 in early 2000; the Nasdaq from 733 to over 5,000. During these manic years, households served as sacrificial lambs to finance an economy that was funded by rising stock and bond prices

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Sidelights to 1994 originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Is It 1994 Again? 25 Apr 2011
A cautionary tale: story from 1994 Japan 7 Aug 2008

What is deleveraging?

Edward Harrison — Tue, 19 Apr 2011 14:22:44 +0000

Given S&P's decision to downgrade the U.S. credit rating to outlook negative, it bears remembering how we got here. I think the key word is deleveraging

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
What is deleveraging? originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

The Age of Deleveraging 19 Dec 2009
Deleveraging Will Continue Apace 16 Jul 2010
The Significance of Consumer Deleveraging 10 Sep 2010

Without changes to reserve currencies another crisis is inevitable

Edward Harrison — Thu, 14 Apr 2011 16:00:28 +0000

We saw that Joseph Stiglitz proposes a new reserve currency to alleviate pressure on trade imbalances. Michael Pettis is now also proposing a similar move away from the U.S. dollar. In an FT Op-Ed, Michael wrote that every generation we hear warnings that the dollar's dominance will wane. In his view, these warnings have intensified of late. The reality is that the US dollar's reserve currency status is a 'public good that comes with a cost'. And the cost is debt accumulation in net importing countries along with trade imbalances that becoming a lightening rod for economic nationalism and protectionism. He recommends the US take the lead in moving to a multi-currency world. I support this recommendation and believe that another crisis is inevitable if we do not move in this direction

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Without changes to reserve currencies another crisis is inevitable originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

The Fiat Currencies Are Headed into Crisis 5 Oct 2010
An Unusual But Interesting Argument Which May Help To Understand Why QE2 Is Now Almost Inevitable 16 Oct 2010
Stiglitz proposes new reserve currency 10 Apr 2011

QE and the Wealth Effect

Claus Vistesen — Wed, 06 Apr 2011 13:00:00 +0000

By Claus Vistesen Events in Japan and Libya do not seem to have derailed the ongoing positive sentiment in the market. But they just might have alerted various Masters of the Universe that black holes (or was that swans?) are both invisible and unpredictable until they occur. It is precisely because of this that such

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
QE and the Wealth Effect originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

The Wealth Gap 9 Nov 2010
Helicopter Ben and his QE II having an effect on Japan and the yen 8 Oct 2010
On QE’s Effect on Gold, Emerging Markets and Other Links 4 Nov 2010

US monetary policy and the saving glut

Guest Author — Thu, 24 Mar 2011 01:50:25 +0000

Is the global saving glut to blame for global imbalances? This column argues that the role played by loose monetary policy from the US Federal Reserve should not be overlooked. The prolonged decline in long-term interest rates in the mid-2000s is largely to blame for the housing boom in the

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
US monetary policy and the saving glut originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Andy Xie: Chinese monetary policy has to be tightened 4 Feb 2010
Brazil Monetary Policy Uncertainty Continues 22 Nov 2010
Chinese inflation, monetary policy and the dollar peg 18 Feb 2011

More Food for Thought

Edward Harrison — Fri, 25 Feb 2011 09:00:20 +0000

Bill Fleckenstein was back talking to Dylan Ratigan about the source of rising oil prices. (See the last Fleckenstein video here). Clearly, supply constraints and increased demand in emerging markets play the central role in creating a supply demand imbalance for a commodity where demand is price inelastic. I am not just talking about natural

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
More Food for Thought originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Food for Thought 7 Feb 2011
Indonesia on Food inflation: Let them eat garden food 7 Jan 2011
FUD for Thought 2: What, Me Worry? 19 Oct 2010

Why Did America Have A 90% Income Tax Under Eisenhower?

Michael Hudson — Wed, 05 Jan 2011 18:50:45 +0000

Michael Hudson reviews the reasoning behind income tax policy in the 20th century, a good lesson in financial history. Interestingly, he says that data show tax cuts have been followed by slow growth in the

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Why Did America Have A 90% Income Tax Under Eisenhower? originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Eisenhower on the Military Industrial Complex 1 Sep 2009
Is America Following the Same Path as Japan? 3 Dec 2010
How globalisation led to universal banking in America 13 Jul 2009

Deflation, Reflation, Inflation

Annaly Salvos — Wed, 27 Oct 2010 03:00:07 +0000

In our September 28 Salvo, we imagined an opportunity to ask Chairman Bernanke the following question: “What does the Fed do if it expands its balance sheet to $4 trillion or $6 trillion, drives the 10-year yield down to 2% or less, but unemployment still stands around 10%?” The question reverberates more loudly every day

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Deflation, Reflation, Inflation originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Inflation or deflation? 30 Jun 2008
The inflation-deflation debate 21 Jul 2008
The inflation – deflation debate redux 10 Aug 2008

Grantham: Night of The Living Fed

Edward Harrison — Tue, 26 Oct 2010 23:16:34 +0000

From From Jeremy Grantham’s latest quarterly letter: If I were a benevolent dictator, I would strip the Fed of its obligation to worry about the economy and ask it to limit its meddling to attempting to manage inﬂation. Better yet, I would limit its activities to making sure that the economy had a suitable amount

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Grantham: Night of The Living Fed originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Jeremy Grantham: Overheating in China, speculative rallies and fair value 27 Jul 2009
More bullishness from Jeremy Grantham 10 Mar 2009
Jeremy Grantham on Bubbles 21 Apr 2010

The Fed wants asset price inflation not consumer price inflation

Edward Harrison — Mon, 18 Oct 2010 14:43:50 +0000

The Fed’s intent is not to create consumer inflation, but rather asset inflation — primarily in the equity market. By pulling longer-term bond yields lower, the Fed hopes that this will alter how investors value equities relative to the fixed-income market. Moreover, the Fed will be actively pushing up the value of bonds that exist

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
The Fed wants asset price inflation not consumer price inflation originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Chart of the day: U.S. Consumer Price Index 16 Dec 2008
Bill Gross: “Stop the decline in asset prices” 29 Jan 2009
A brief look at the Asset-Based Economy at economic turns 7 Oct 2009

Since Plaza Accord dollar-yen has sunk 70% without decreasing US deficit with Japan

Edward Harrison — Thu, 14 Oct 2010 03:47:53 +0000

In regards to Paul Krugman’s argument’s on China in the video in the last post, I think this quote from David Rosenberg’s latest daily market commentary is spot on: Since 1985, dollar-yen has sunk nearly 70% and yet the US has the same bilateral deficit with Japan today as it had then. So why does

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Since Plaza Accord dollar-yen has sunk 70% without decreasing US deficit with Japan originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Is China in a bubble blow-off top like Japan post-Plaza accord? 15 Mar 2010
Beware of deficit hawks 20 Nov 2008
Deficit terrorism could kill the Euro 22 Jan 2010

Stephen Roach: Quantitative Easing Won’t Work

Edward Harrison — Tue, 12 Oct 2010 21:00:54 +0000

"Global imbalances are a shared responsibility. The world is dead wrong to blame it on China." That’s how Morgan Stanley’s Stephen Roach began his interview with CNBC Asia. I agree 100% with these sentiments as I discussed in my post on My thoughts on the ‘currency war’. Nor is it about Japan alone or the

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Stephen Roach: Quantitative Easing Won’t Work originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Stephen Roach: Downturn in Asia less severe, but recovery later 10 Feb 2009
Quantitative easing in the U.K. 9 Mar 2009
Stephen Roach: The case against Bernanke 25 Aug 2009

Lakshman Achuthan talking credit growth and recovery on Squawk Box

Edward Harrison — Mon, 21 Jun 2010 12:46:22 +0000

This morning ECRI’s Lakshman Achuthan was talking about the recovery on CNBC. His take is that the recent slowdown in GDP growth is normal for the recessions since before World War II so far. If we dip even more from here, we have trouble. The discussion at the end of the video about credit growth

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Lakshman Achuthan talking credit growth and recovery on Squawk Box originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Achuthan: Leading Indicators Point To Slowing Growth; Jobs Outlook Murky 5 Jun 2010
US GDP growth rate is unsustainable; recovery will fade 30 Apr 2010
Chart of the day: consumer credit growth 29 May 2008

The origins of the next crisis

Edward Harrison — Mon, 12 Apr 2010 18:39:54 +0000

William White, the former chief economist at the Bank of International Settlements (BIS) gave an important speech at George Soros’ Inaugural Institute of New Economic Thinking (INET) conference in Cambridge. While everyone is casting about for the one magic bullet solution which would have prevented this and future crises, he placed the blame for the

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
The origins of the next crisis originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts No related posts.

Throwing in the towel on policy makers

Edward Harrison — Tue, 06 Apr 2010 23:26:57 +0000

Earlier today, I had a brief e-mail exchange with Marshall Auerback in which I said that I had basically thrown in the towel on US (and global) policy makers. Early on in this crisis, I had advocated a number of policy paths which I think would have been infinitely superior to the ones actually chosen

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Throwing in the towel on policy makers originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Turning Japanese and understanding the consequence of policy half-measures 15 Apr 2009

Americans are now back to the overconsumption norm

Edward Harrison — Mon, 29 Mar 2010 14:47:10 +0000

We got the data on consumption, savings and income from the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA). What we saw should definitely bolster the view that recovery has taken hold but at the expense of saving. The BEA reported: Disposable personal income (DPI) — personal income less personal current taxes — increased

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Americans are now back to the overconsumption norm originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Stephen Roach: Americans’ abandonment of overconsumption is a good thing 28 Nov 2008
Americans are not increasing savings 12 Oct 2009
Back to the real economy 14 Oct 2008

More support for the asset-based economy status quo from Sir Alan Greenspan

Edward Harrison — Mon, 08 Feb 2010 14:00:01 +0000

With stocks now up significantly from March 2009 lows, a mild correction has been underway for the past two weeks. Even if it risks becoming a major correction, we will still be well above levels just 6 months ago. But that has Alan Greenspan worried. Business Week reports: Former Federal Reserve Chairman Alan Greenspan said

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
More support for the asset-based economy status quo from Sir Alan Greenspan originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Dilbert on the asset-based economy 4 Oct 2009
A brief look at the Asset-Based Economy at economic turns 7 Oct 2009
Is Alan Greenspan self-serving? 5 Aug 2008

Short sale fraud

Edward Harrison — Wed, 20 Jan 2010 22:28:25 +0000

CNBC’s Diana Olick has the breaking story on alleged fraud in the mortgage industry. She has been writing about this for a few days now. See Big Banks Accused of Short Sale Fraud – Realty Check with Diana Olick at CNBC’s website. Basically, second liens on properties like home equity loans have a blocking interest

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Short sale fraud originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Lehman Brothers to post $3 bln loss; sets $6 bln stock sale 9 Jun 2008
Cruising foreclosures, REO and short sales with Jim the Realtor 21 Jul 2009
Is the short covering rally over? 24 Jul 2008

Readers of this blog expect the recession to last redux

Edward Harrison — Fri, 15 Jan 2010 15:48:19 +0000

Back in June I asked you all “When will the U.S. economy recover?.” The response was basically either “there will be no recovery to speak of” or “recovery is a long way off.” The poll results are embedded below. [poll id="9"] I asked a similar question as the new year began since arguably a ‘technical

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Readers of this blog expect the recession to last redux originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Readers of this blog expect the recession to last 18 Jun 2009
Macro Maven: Expect a long difficult recession 13 Dec 2008
De-leveraging redux 4 Jun 2008

China takes steps to prevent overheating

Edward Harrison — Tue, 12 Jan 2010 13:32:09 +0000

China has been very successful in maintaining GDP growth in the midst of one of the worst global downturns on record. In 2009, the concern was how an export collapse would trigger slow growth and unemployment. But as 2010 begins, for the Chinese economy, it is overheating and inflation that most are worried about. Chinese

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
China takes steps to prevent overheating originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

Jeremy Grantham: Overheating in China, speculative rallies and fair value 27 Jul 2009
China: we “will take steps to protect the interests of our domestic industries” 6 Nov 2009
Obama takes middle road on stimulus and taxes that leads nowhere 26 Jun 2009

Why economists failed to anticipate the financial crisis

Edward Harrison — Sat, 02 Jan 2010 07:00:57 +0000

About three months ago, Nobel Prize winning economist Paul Krugman took a stab at explaining why economists didn’t anticipate the worst financial crisis in three-quarters of a century. His was a long piece, taking up eight pages and 6,000 words at the New York Times website. His overview was certainly one of the best in

Credit Writedowns Pro is now live. Sign up today for monthly or yearly subscriptions.
Also read our News Feed for the latest financial and economic news.
Why economists failed to anticipate the financial crisis originally appeared on Credit Writedowns

Links: RSS - Daily - Weekly - Twitter - Facebook - Contact
Credit Writedowns Feed # abf0d081857b85fe6be494728740a4f1

Related Posts

The financial crisis explained 4 Sep 2009
Picture of the day: Tom Toles on the Financial Crisis 15 Oct 2008
The 3 AM call: financial crisis has that phone ringing 18 Sep 2008