Market irrationality
The sell-off in financial markets is, well, you know how it is. But an interesting question is how much it is related to fundamentals, and how much it is just […]
Has the housing market bottomed?
It doesn’t seem like it. It’s a nasty vicious cycle, worsening economy getting more house owners in trouble and a worsening housing market hits consumer spending, further worsening the economy […]
Why injecting Bank Capital is way more effective than buying toxic assets
This is a point not grasped by everyone. Not a reporter at Bloomberg, and even more surprisingly, not by Paul Kedrosky, who otherwise runs an excellent blog.
Greenspan’s about face on regulation
About time.. Not so long ago, he was a hero. Perception can change rapidly..
Commodities comeback depend largely on China
Where is that next bubble going to come from? As we have argued before, there is really only one candidate, in our view. Commodities. Jim Rogers, the motorbiking emerging market […]
There is only one solution..
Authorities have to re-activate the bubble cycle. They’ve made a promising start by lowering interest rates to 1.5%, they’re almost there…
Dr. Doom at it again
We had a couple of fairly optimistic comments and commentators yesterday, but dr. Doom, aka Nouriel Roubini, the one who predicted it all is not amongst them…
It could have been a lot worse
Some people seem to think we’re on the brink of a 1930s style depression. It ain’t going to happen. The policy response (after considerable dithering) has been much better this […]
Leverage
Investment banks have been some of the financial crisis main victims. Their business model left them wide open for all kinds of trouble. Basically, their leveraged business model is the […]
Gordon Brown did indeed save the financial system
We had an earlier article, predicting that the Gordon Brown would save the world’s financial system. (We were even a day earlier than Krugman, but he might have been distracted […]