Ford Trumped

Ford TrumpedAsia-Pacific governments need to keep a close eye on what the bosses of America’s largest companies are saying and doing about President Donald Trump’s protectionist drive. Companies that for years have said they wanted equal access to markets and investment opportunities are now falling over themselves to embrace Trump’s reversal of the open trade that…

Mind Over Money

In more layman terms, the PBS science television program NOVA, in trying to find answers to two important and related questions – one, why did main stream economists fail to predict the 2008 stock market crash, and two, why do people so often make irrational financial decisions – seeks to come up with a plausible…

U.S. Fed in the Hot Seat

Xie’s article entitled "Tight Spot for Fed, Blind Spot for Investors" explains succinctly how the U.S. Federal Reserve is caught between a rock and a hard place, after committing to a US$12 trillion stimulus package to bail out the financial system. It is caught in a dilemma on whether to keep interest rates artificially low,…

Bad Idea To Park Your Money In Stocks

What can Americans expect in the next decade? A savings boom, anemic annual GDP growth, a deflationary cycle, a sickly stock market and a return to boring banking. And this is bad news for countries like Japan and China, whose export growth has depended on Americans’ consumerist behavior. This is the prediction Shilling makes in…

Formula That Blew Up Wall Street

The article explains in the best layman terms possible the intricate mathematical models used by Wall Street to price the mortgage-backed securities and derivatives. I don’t pretend that I understand every word in the article, but it does give me a more enlightening glimpse into the almost inscrutable world of 'quant' (to me anyway) and…

The Great Reckoning

The article is an exceptionally long one, but it’s worth the read.  In the article, Lewis tells the story of how Steve Eisman of Frontpoint Partners, along with his co-workers Vincent Daniel and Danny Moses, set out to unravel the Wall Street mendacities and black-box swindles that ultimately led to the mammoth financial beast going…

Americans Were Right To Say No!

For the 200 US economists who wrote to Congress opposing the plan and the majority of House members, rejection, if seemingly unconstructive, is the far more conscientious choice, because the alternative (acceptance of the plan) would not have been the right cure for the nation’s financial ills, not to mention that the plan would be…

Bailout for Bankers, Sellout for Taxpayers

In an IHT article, Paul Krugman, Op-Ed writer for The New York Times and professor of Economics and International Affairs at Princeton University, dissects in a succinct way the unprecedented financial crisis, which he sees as unfolding in four steps, and comments on the pitfalls of Henry Paulson’s US$700 billion bailout plan.   “Well, it…

Will the U.S. Follow Lehman’s Footsteps?

Roberts came to this conclusion in his article:-   “Most Americans, including the presidential candidates and the media, are unaware that the US government today, now at this minute, is unable to finance its day-to-day operations and must rely on foreigners to purchase its bonds. The government pays the interest to foreigners by selling more…

Storm Looming

Recommended reading: U.S. Banks Brace for Storm Surge as Dollar and Credit System Reel By Mike Whitney (Counterpunch) An excerpt:- "A more powerful tsunami is about to descend on the United States where many of the banks have been engaged in the same practices and are using the same business model as Northern Rock. Investors…
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