MarketWatch – Shilling says new global recession is here Europe leads downturn, U.S. poised for milder decline Unlike many gloom and doomsters, Shilling is a genial sort who likes cracking jokes and keeps bees as a hobby. But when it comes to economics he’s dead serious: He’s been consistently gloomier than the economic fraternity and… Continue reading Another Economic Downturn Coming?
The Economist – Greece’s debt-holders: Volunteers wanted Greece’s creditors would all have to take a massive hit to right its finances A CATCHY new phrase has been added to the Orwellian lexicon of Euro-speak, where terms such as “stability and growth” actually mean the opposite. This is “private-sector involvement” (PSI), which is code for imposing… Continue reading Greece
The Economist – American banks: Losing altitude Lenders can cheer for their own survival, and not much else For all that, bank returns on equity are still too low to justify lenders’ existence. The big winner in the quarter was Wells Fargo, which benefited as much from what it did not have—a big investment-banking arm—as… Continue reading Banks
Bloomberg.com – Bonds Show Return of Crisis Once ECB Loans Expire: Euro Credit European Central Bank President Mario Draghi’s unlimited three-year loans to euro-region banks may give Italy and Spain only temporary respite from the region’s debt crisis. Two-year Italian and Spanish notes rallied since the ECB said Dec. 8 that it planned to offer… Continue reading ECB Loans
The Economist – Buttonwood: Not so smart How executives spend their company’s cash But are executives any good at market timing? Not according to the calculations of Andrew Lapthorne, a quantitative strategist at Société Générale. In January 2008, just as the stockmarket was starting one of its worst years in history, companies in the S&P… Continue reading Companies Spending Cash
The Wall Street Journal – The Greece Next Door Illinois gets a credit downgrade, in contrast to Wisconsin Run up spending and debt, raise taxes in the naming of balancing the budget, but then watch as deficits rise and your credit-rating falls anyway. That’s been the sad pattern in Europe, and now it’s hitting that… Continue reading Illinois, The American Greece?
The Economist – The euro crisis returns: Salve Italia If Germany’s Angela Merkel wants to save the euro, she must do more for Italy’s Mario Monti SADLY, the lull proved but brief. The first two weeks of the year were surprisingly calm for the storm-tossed euro zone. But a gale is blowing again. First a… Continue reading Italy
The Economist – Income inequality: Who exactly are the 1%? The very rich in America increasingly work in finance, marry each other and care passionately about politics Although the 1% have been gaining share in most countries, a recent OECD report shows that the trend began sooner, and has gone further, in America. Some scholars,… Continue reading Who Are The 1%?
The Economist – Business in America: Glass half empty Why businesspeople are so gloomy about America PROFITS may be at a record high, but American businessfolk are feeling glum. Some moan that their pipeline-postponing president, Barack Obama, doesn’t understand how business works. Others fret that America itself is becoming dysfunctional. Much of this pessimism is… Continue reading Gloomy Business People
Real Time Economics (WSJ Blog) – St. Louis Fed Says CBO Doesn’t Forecast Deficits Well Congress’s long history of underestimating future budget deficits suggests the current outlook for the nation’s finances may be even grimmer than many now expect. A new paper by the Federal Reserve Bank of St. Louis argues the Congressional Budget Office… Continue reading The Federal Reserve Shoots Down CBO Forecasts
The Wall Street Journal – China Sold Treasurys in November China sold U.S. Treasurys in November, but remained the largest foreign holder ahead of Japan, the Treasury Department said. Overall, foreigners were net buyers of long-term U.S. financial assets in November, a month in which Europe’s debt crisis continued to boost the appeal of U.S.… Continue reading China Sells U.S. Treasuries