Daily Archive: Monday, December 14, 2009

Summers supports Obama administration policy stupidity

[Skip to the end] Banking and the entire private sector in a capitalist society is necessarily procyclical. Only the Federal government can be countercyclical, and, indeed that’s it’s role in supporting aggregate demand in a slowdown. The blame for current conditions falls unambiguously on current policy. Comments below Obama Plans to Press ...Read More

Citi to repay $20 billion TARP funding

[Skip to the end] Does anyone in Washington realize any ‘profits’ govt makes reduces private sector net financial assets by that amount? Just like a tax, though a banks marginal propensity to spend is probably near 0. And that TARP funds per se do nothing for banks, its just the change in ...Read More

Obama vs the banks

[Skip to the end] Looks like a lapse into behavior not becoming a President- name calling, cheap shots, demonizing, and failure to recognize the behavior in question is a consequence of incentives built into the current institutional structure. The legislation in question completely misses the point. More and more voters are beginning ...Read More

oil supporting the dollar

[Skip to the end] Crude oil below $69 is now offering even stronger fundamental support for the $US. And it’s not impossible cash flow issues of member nations may be causing ‘cheating’ on OPEC quotas that would ultimately show up in lower Saudi production as they try to hold price. The Saudis ...Read More

Greenspan comments

[Skip to the end] In case you thought Greenspan actually understood monetary operation. He obviously thinks quantitative easing is somehow inflationary per se: Fed can do no more to cut unemployment: Greenspan By Doug Palmer Dec. 13 (Reuters) — The U.S. Federal Reserve has done all it can do to reduce unemployment ...Read More

Mankiw, you’re welcome…

[Skip to the end] By N. GREGORY MANKIW Published: December 12, 2009 IMAGINE you are a physician and a patient arrives in your office with a troubling and mysterious disease. Some of the symptoms are familiar, but others are not. You have never treated anyone with quite this set of problems. David ...Read More

Obama vs the banks comment

[Skip to the end] Looks like a lapse into behavior not becoming a President- name calling, cheap shots, demonizing, and failure to recognize the behavior in question is a consequence of incentives built into the current institutional structure. The legislation in question completely misses the point. More and more voters are beginning ...Read More