Market Manipulation, Nationalized
Friday, 19 September 2008 | 12:00 am
The Fed and Treasury are putting their heads together to find a solution. They need to figure out first what the problem is beyond the symptoms we see. It is, however, a first step. Managing expectations at a time like this is as important as material policy. It looks like they propose a system wide
- Published in Articles
No Comments
Credit and the economy
Saturday, 30 August 2008 | 12:00 am
The scale of the credit crisis is huge and current wisdom, and it is pretty convincing, is that there will be no way out for at least a couple of years more. On the other hand, US economic growth remains robust even as unemployment rises in certain sectors and retail sales falter. We already see
- Published in Articles
Europe
Wednesday, 27 August 2008 | 12:00 am
The Eurozone recorded its first quarter of negative growth since 2003. Annual growth had peaked in 2006 at 3.3% and is currently 1.5% and slowing. The distribution of growth was not uniform with Spain and Italy clearly slipping towards recession. France and Germany continued to report stable albeit slowing growth. The UK also was slipping
- Published in Articles
Inflation Comment
Saturday, 09 August 2008 | 9:06 am
The US and Europe cannot fight inflation by raising interest rates because their domestic economies are not pushing against full employment. The source of inflation is from the emerging markets. The US and Europe need China and India to raise interest rates and fight inflation. If they get what they need, that means interest rates
- Published in Articles