Financial Times Archive

The unconscious liberal

Macroeconomic Populism Returns By Paul Krugman February 1 (NYT) — Matthew Yglesias says what needs to be said about Argentina: theres no contradiction at all between saying that Argentina was right to follow heterodox policies in 2002, but it is wrong to be rejecting advice to curb deficits and control inflation now. ...Read More

Capex growth to slow

For the economy to grow faster, seems all the pieces, ‘on average’ have to grow faster? Hopefully it picks up as most forecast, but seems to me the deficit maybe has gotten too small for the demand leakages, and all that follows from that… US capex to grow at slowest rate in ...Read More

Comments on Volcker article

Here’s my take on the Volcker article My comments in below: The Fed & Big Banking at the Crossroads By Paul Volcker I have been struck by parallels between the challenges facing the Federal Reserve today and those when I first entered the Federal Reserve System as a neophyte economist in 1949. ...Read More

Obama the ‘socialist’…

Best Times for the 1 Percent Since 1920s By Paul Wiseman September 11 (AP) — The richest Americans were hit hard by the financial crisis. Their incomes fell more than 36 percent in the Great Recession of 2007-09 as stock prices plummeted. Incomes for the bottom 99 percent fell just 11.6 percent, ...Read More

Fed minutes, comments on full text

Comments in below and highlights mine: Developments in Financial Markets and the Federal Reserve’s Balance Sheet The Manager of the System Open Market Account reported on developments in domestic and foreign financial markets as well as the System open market operations during the period since the Federal Open Market Committee (FOMC) met ...Read More

With friends like this who needs enemies…

Right on top of the wall of shame: A message from Larry Kotlikoff Dear Fellow Economists, I write to ask you to join 11 Nobel Laureates in Economics, other leading economists, and former government officials in endorsing the INFORM ACT (Intergenerational Financial Obligations Reform Act) at www.theINFORMact.org. The bill was introduced on ...Read More

Byron Wien’s August 2013 Commentary

The usual muddled mainstream confusion, but worth reading as to how it all now maybe points to a weaker 2nd half. That is, if mainstream thought is now transitioning from improvement to weakness markets should react accordingly. Byron Wien is Worried About Rest of Year By Byron Wien August 2 (Barron’s) &#8212 ...Read More

Fitch says China credit bubble unprecedented…

Nothing that fiscal adjustment can’t keep from spilling over into the real economy. But that’s not how the western educated offspring now in charge learned it… Fitch says China credit bubble unprecedented in modern world history By Ambrose Evans-Pritchard June 16 (Telegraph) — China’s shadow banking system is out of control and ...Read More

ADP

Continuing evidence of deceleration. A 150,000 jobs print Friday puts the 3 month average back to around where it was when the Fed expanded QE due last year due to cliff fears, etc. So with CPI also weak, at least for now the Fed continues to fail on both its mandate targets. ...Read More

placebo’s doing their thing

As previously discussed, financial placebos like QE do cause market participants to alter behavior out of either a misunderstanding of the actual fundamentals, or in anticipation of reactions by others presumed to be misinformed. And while the effects of these activities get reversed, however sometimes the effects are more lasting. And there ...Read More