Roubini: The next big crash is already underwayThe global economy may appear to be in recovery, but people are borrowing at negative interest rates and investing in risky assets like commodities, equities and credit. We’re creating an even bigger bubble than before, says Nouriel Roubini.
US economy
Political economy: How best to regulate the financial system
It has been observed that if a bank is too big to fail it is too large to live, writes Henry Thornton. Goldman Sachs is in the class of organisations that should be allowed to fail.
Country clubs and corporate jets: perks continue at bailed-out banks
When the US government was bailing out their banks to the tune of hundreds of billions of dollars last year, big banking executives were receiving more perks and bonuses than usual, according to new corporate disclosures.
Riding the coattails of Asia’s success
Despite initially being the hardest hit by the GFC, Asian economies have proven more resilient than US and Europe. Manufacturers are hopping on board, exporting to developing countries like China and India and reaping the rewards.
How Wall Street makes its billions
All the major Wall St banks’ profits come from trading, but who is on the receiving loss end of trades? asks Philip Greenspun. Banks don’t just shift Federal money around and skim off profits for themselves, do they?
Krugman: Big Banks are still buggered
Don’t be fooled by their cash splashing bonuses and reported “record profits”, says Paul Krugman: the big banks are still in deep poo; they’re just really good at pretending they’re not.
Despite rebound, US still hasn’t got its housing in order
Stand by for the “two-speed America” story to start emerging: that’s where the rebound in financial markets and on wall Street is way ahead with the sluggish wider economy, especially housing.
US economy blows another bubble
The great market bubble goes on as cheap credit, blinkered managements and greedy investors continue to power markets higher to unsustainable levels.
US lending continues with the contractions
US banks are showing no other sign than a continued contraction in all forms of lending if you aren’t already a big and beautiful company, writes Julian Gillespie.
Political economy: a looming property crash?
One reason to be worried about raising interest rates here is the parlous state of the US economy, writes Henry Thornton, with US unemployment at 9.8% and hours worked at record lows.
Reality bites global economy, again
Suddenly realism is back in fashion on Wall Street and in other parts of the business world. Which is why markets across the globe are falling, quickly and sharply.
Political economy: the jobs challenge
The good news is that the US downturn is in the process of bottoming, though jobs are still falling, with around 15 million workers unemployed, writes Henry Thornton.
Why Swan was right on stimulus
It made sense for policy makers everywhere to use all available counter-cyclical tools in an urgent attempt to lessen the serious risk of economic disaster, says Rory Robertson. But the economy story is not all good.
Has Palin begun her presidential campaign?
Sarah Palin flexes her foreign policy muscles in her first international public speaking event, blaming the GFC on government interference: “We’re not interested in government fixes, we’re interested in freedom”.
Why households must save to save the economy
Keynes’ Paradox of Thrift says that if everyone starts saving during a recession then reduced demand can make things worse. So spending has traditionally been encouraged. But a new IMF paper challenges the theory.
Talking the Town: The 86 Biggest Lies on Wall St launch
There was no better way to commemorate one year since the fall of Lehman Brothers than in the company of esteemed economics editor Ross Gittins and author John R. Talbott.
Bernanke ‘recession over’ claims ridiculous
Markets went whoopee, but Ben Bernanke’s comments that the the “technical recession” in the US was probably over chafe badly with reality.
Washington is the new Wall St
Wall St is no longer the financial capital of the USA, says the Washington Post. Since the country’s economy was plunged into crisis a year ago and the government intervened to prevent total carnage, the new financial power-players and puppet masters are all in Washington.
Time for a new New Deal
Things turned sour for the American economy when New Deal wisdom was overruled. But we can still learn much from its guiding principles: stringent regulation for commercial banks and a lighter regulatory touch for most of the rest, says David A Moss.
US unemployment a social powder keg
On the surface, the latest US unemployment data is better than expected, but it hides the real continuing pain and agony across thousands of American cities and towns.
Lobbyists fall on hard times
Washington now has 2,200 fewer registered lobbyists than a year ago, even though it’s prime time for political lobbying, with health care and energy legislation up for grabs. Companies just don’t have the money, says Dan Eggen
Henry Paulson: Wall Street prince battles the GFC
Henry Paulson, former Goldman Sachs CEO, became US Treasury secretary in 2006. Todd S Purdum really gets to know the Republican who is now “the greatest economic interventionist of his generation”.
