Author Archive

Es el momento de comprar acciones en Wall Street

I don’t speak sufficient spanish to know how this reads. Comments welcome! WARREN MOSLER, UN ECONOMISTA SINGULAR “Es el momento de comprar acciones en Wall Street” Mosler es a la vez un típico financista que administra fondos de inversión y un pensador poskeynesiano que fabrica autos deportivos. En la peor semana de ...Read More

Rebate discussion comment

Lots of talk that rebates from Congress will be spent on imports and therefore not help US economy. Wrong! Yes, most spending will be on imports. But non residents are now spending their ‘hoard’ of $US financial assets on our goods and services (aka, US exports). If anything, the rebates will further ...Read More

Nobel economist Joseph Stiglitz warns of 1930 STYLE LIQUIDITY TRAP

US Slides into Dangerous 1930s ‘Liquidity Trap’ The Daily Telegraph’s Ambrose Evans-Pritchard details interesting insights from Joseph Stiglitz. No, common errors. The United States is sliding towards a dangerous 1930s-style “liquidity trap” Probably not – rare with floating exchange rates. that cannot easily be stopped by drastic cuts in interest rates, Nobel ...Read More

Fed cuts increasing demand and lowering the dollar support crude prices

Oil futures jump back above $90 a barrel by John Wilen Oil futures jumped back above $90 a barrel Friday, adding to the previous session’s sharp gains on a view that the recession worries that pulled prices lower in recent weeks may have been overblown. So markets are now linking rising oil ...Read More

Re: UN Warns of Biofuels’ Environmental Risk

(an email) THANKS, DAVID, COMMENTS BELOW IN CAPS >    Subject: UN Warns of Biofuels’ Environmental Risk > > >   By MICHAEL CASEY >   AP Environmental Writer >   BANGKOK, Thailand > >   The world’s rush to embrace biofuels is causing a spike in the price of corn >   and other crops THE ...Read More

Caterpillar report – what export economies look like

Caterpillar Sees ‘Definite Threat’ of US Recession (CNBC)Caterpillar’s fourth-quarter earnings rose more than 10 percent, helped by strong sales to mining, energy and construction customers outside the United States, but the company warned it sees a recession as a “definite threat” to the U.S. economy. The Peoria, Ill. company, which is often ...Read More

2008-01-25 Balance of Risks Update

Mainstream economics would put it this way: Inflation risk to long term growth vs short term growth risks So on the inflation side: CPI year over year up to 4.1% Core CPI 2.4% year over year, 2.9% month over month (2.5% high end of Fed’s comfort zone) Headline PCE deflator 3.6% year ...Read More

Refi madness

Homeowners rushing to refinance mortgages Federal Reserve’s surprise rate cut sparked a refinancing boom This week’s surprise rate cut by the Federal Reserve not only held Wall Street and investors in thrall, it’s also kicked into high gear a rush by homeowners across the country to refinance their mortgages at today’s lower ...Read More

Tax cuts, oil prices, and gasoline consumption

Oil prices jump after Bush, Congress reach agreement on economic stimulus plan by John Wilen Oil futures jumped more than $2 a barrel Thursday after the Bush administration and Congressional leaders agreed to an economic stimulus plan that will give most Americans tax rebates of $600 to $1,200, or even more if ...Read More

Falling default credit crisis

The jobless recovery morphed into the full employment recession characterized by falling credit defaults: Global loan defaults down in 2007 but expected to rise in 2008 (Thomson Financial) Twenty issuers defaulted on 2.9 bln usd in syndicated bank loans in 2007, down from 32 issuers and 6.3 bln usd in loans in ...Read More