credit

Bad News Ahead

Tim Price offers some important observations in this article: Credit expansion, wrote the great Austrian economist Ludwig von Mises, is not a nostrum to make people happy. "The boom it engenders must inevitably lead to a debacle and unhappiness." That seems a pretty accurate summary of the current situation for the western economies: a debacle, and unhappiness. Von Mises also wrote that [...]

Gun Control For You But Not Me

A picture is worth a thousand words (or guns). Received via email. Credit should be given but unknown.

An Inevitable, Unhappy Ending

Tim Price offers some important observations in this article: Credit expansion, wrote the great Austrian economist Ludwig von Mises, is not a nostrum to make people happy. “The boom it engenders must inevitably lead to a debacle and unhappiness.” That seems a pretty accurate summary of the current situation for the western economies: a debacle, and unhappiness. Von Mises also wrote that [...]

Is The Housing Crisis Over?

Recent numbers were positive for housing. Are they really meaningful and sustainable? There is not universal agreement that the bottom has yet been reached. Realtors, politicians and others with vested interests are quick to claim we are on our way back. Michael Panzner cites others who are less sure or disagree with this conclusion: Potential supply is significantly larger than [...]

The End Is Near

At the risk of looking/sounding like some crazed religious fanatic usually seen carrying a sign or proclaiming: “Repent, the end is near,” I shall avoid the word “repent. To me, the rest of that proclamation appears accurate and reasonable, at least with regard to our economic condition. The US and world economy are near collapse. Sovereign debt, driven by increasingly [...]

Who Was Responsible for Getting Bin Laden?

According to a memo from head of the CIA, Obama (surprise!) doesn’t seem to have been as hands-on as he claimed in the Osama bin Laden mission. Here are some of the details as reported by Pundit Press: The memo reads (emphasis mine): Received phone call from Tom Donilon who stated that the President made a decision with regard to [...]

The Debt Monster Will Destroy The World

There are still those who don’t believe the world is heading for massive debt defaults. But then there are also some who believe King Tut is not dead but merely sleeping. Debt has grown exponentially in developed countries. This growth includes both consumer, corporate and government debt. Debt is supported by collateral assets. Assets grow linearly. To be sustainable, debt [...]

Investors Beware

This post from Tyler Durden relies heavily on David Rosenberg, probably the most astute financial/economic analysis around. Both are very dubious regarding a recovery and the levitating stock market. It is highly unlikely that we are in a real recovery. Reported GDP numbers were positive for the past two quarters, but subsidiary components are not behaving well. Investors beware. Today [...]

Crowding Out Your Future

“Crowding out” is an effect claimed to occur when governments run deficits and have to borrow to finance the deficits. It refers to the government using funds via borrowing that otherwise would go to private borrowers. Hence, they are “crowding out” the private borrowers. In normal times, when government deficits are small relative to the economy, crowding out probably has [...]

HAPPY NEW YEAR, NOW GO TO THE BOMB SHELTER

Stock your bunker. 2010 is apt to be ground zero for financial markets. Sixty years later, a bomb-shelter strategy once again seems in order. But this time it will used for financial as opposed to physical protection. The year 2010 is likely to be the pivotal year where pundits stop referring to the recession and begin openly talking about a [...]

Simple Math Suggests No Imminent Recovery Possible

Here is a post from Karl Denninger. It is about Citibank and is outrageous. Apparently it is going on with other credit card issuers as well. This is the sort of thing that, in my opinion, makes meaningful economic recovery impossible.  (Click for a larger copy) Here’s what it says: To continue to provide our customers with access to credit, [...]

Bernanke’s Bridge?

Image via Wikipedia I think I would buy the Brooklyn Bridge before I bought the following: “By using our balance sheet, the Federal Reserve has been able to overcome, at least partially, the constraints on policy posed by dysfunctional credit markets and by the zero lower bound on the federal funds rate target. By improving credit market functioning and adding [...]