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Full text: Moody’s downgrades Italy’s government bond ratings to A2 with a negative outlook

Full text: Moody’s downgrades Italy’s government bond ratings to A2 with a negative outlook

Moody’s Investors Service has today downgraded Italy’s government bond ratings to A2 with a negative outlook from Aa2, while affirming its short-term ratings at Prime-1. The rating action concludes the review for downgrade initiated by Moody’s on 17 June, 2011.

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BEA Adjusts Second Quarter GDP Growth Rate Upward

BEA Adjusts Second Quarter GDP Growth Rate Upward

The public has been seeing their (per-capita) “slice of the pie” contract now for six months, and no amount of well spun “sluggish growth” can alter their view of a shrinking reality.

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Mosler: Why Greece should not be allowed to default

Mosler: Why Greece should not be allowed to default

Warren Mosler argues that it is the realization that the ECB is the issuer of the currency, and is therefore not revenue constrained, that leads to the conclusion that not allowing Greece to default best serves public purpose.

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Why is the Fed lending dollars unsecured to the ECB… again

Why is the Fed lending dollars unsecured to the ECB… again

It remains my position that Congress should not allow the Fed to lend unsecured to foreign central banks without specific Congressional approval. But the Fed does currently have that authority and they are again using it to keep $ LIBOR from rising. And that lending must be in unlimited quantities to insure $ LIBOR is capped at the Fed’s target rate.

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Additional US dollar liquidity-providing operations over year-end

Additional US dollar liquidity-providing operations over year-end

A statement by the Bank of England on market liquidity to be provided in co-ordination with other major international central banks.

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The damaged ECB legitimacy

The damaged ECB legitimacy

The European Central Bank was once known for its focus on price stability. Since the global economic crisis, however, its role has extended to saving banks and sovereign countries. This column argues that such a move has badly harmed the institution’s legitimacy – something that will damage both its policy effectiveness and confidence in the governing bodies of the EU as a whole.

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Mosler: The Speech that President Obama Should Make

Mosler: The Speech that President Obama Should Make

Warren Mosler has three proposals specifically designed to get sales up to make sure business has a good paying job for anyone willing and able to work. He arguess that’s good for businesses and all the people who work for them and says these proposals are bipartisan. His view is that they are supported by Americans ranging from Tea Party supporters to the Progressive left, and everyone in between

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UBS: Euro break-up – the consequences

UBS: Euro break-up – the consequences

The following is excerpted from today’s UBS research note by Stephane Deo, Paul Donovan and Larry Hatheway on the consequences of a euro break-up. The full note is embedded below.

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Bernanke: The Near- and Longer-Term Prospects for the U.S. Economy

Bernanke: The Near- and Longer-Term Prospects for the U.S. Economy

Ben Bernanke’s Speech to the Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming

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Manufacturing data suggest contraction

Manufacturing data suggest contraction

The Richmond Fed manufacturing index fell to -10 in August from -1 in July, joining other manufacturing index sugessting contraction in the sector.

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The Jackson Hole Spaghetti Toss

The Jackson Hole Spaghetti Toss

If the Chairman has to do something, then the real question is what policy response is adequate to a) reviving asset prices and b) returning the US to trend real GDP growth (since the portfolio balance channel appears to be the only one left for monetary policy transmission to work). Many institutional investors may be realizing that is a null set given current political configurations, and so whatever the Chairman delivers – even if he goes boldly where no Fed governor has ever gone before – may have a very short half life, as we saw with the last move of pegging the 2 year US Treasury yield at the fed funds rate.

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Soros: Europe needs Eurobonds

This week’s Outside the Box is in the tradition of showing the other side of the argument. Normally, anything George Soros says or does politically has my blood pressure up about 20 points. Yet, I posted another piece of his today in Over My Shoulder – and then ran across this longer piece from Der Spiegel. Note this is from a dedicated Europhile wanting to save the euro. He succinctly outlines what must be done if it is to be saved, and does it as well as anyone. (I know that among my readers there are both likers and haters of Soros, but as an observer of markets he is to be respected. And this is an article in which his acumen is in evidence.

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