Browsing All Posts filed under »Credit Markets«

Where exactly are we getting the money to spend? US Savings Rate, Disposable Incomes & Consumer Credit

December 14, 2011


Retail sales are up for the sixth straight month.  But… 1. The average American lost $21,000 in net worth in Q3, 2011 according to the December 8, 2011 Federal Reserve Flow of Funds release. 2. Personal savings rates are on a marked decline after a predictable spike during the recession: 3. Disposable income is back […]

Sovereign Debt Enforcement

October 26, 2010


A Bloomberg article today reports the view that Greece will assuredly default on their sovereign debt within three years. Serendipitously,  from my reading of “This Time is Different” by Carmen Reinhart and Kenneth Rogoff: In the modern era, however, the idea of using gunboat diplomacy to collect debts seems far-fetched (in most cases). The cost-benefit […]

Robert Reich, Economic Chef

October 24, 2010


Who knew my Sunday morning coffee with the week’s recordings of The Charlie Rose Show would include culinary genius Robert Reich, former Labor Secretary under Bill Clinton? Reich just published his book “After Shock.” While I typically don’t agree with Reich on policy, he made several excellent arguments and one-liners about economic decisions ahead: The […]

Some comments about debt

September 27, 2010


About a year ago, I picked up a copy of Andrew Ross Sorkin’s “Too Big to Fail” and wrote about it here. Sorkin was back on the Charlie Rose show a couple weeks ago discussing more concepts on debt, but how it applies to public debt – are countries too big too fail?  Given the […]

My two cents: Bernanke’s comments

August 27, 2010


The headlines and theme were what they needed to be – “Bernanke: Fed will take action if economy falters.” (from “Bernanke Says Fed Stands Ready to Support Recovery.” (from the Wall Street Journal) “Bernanke outlines three options for additional economic stimulus.” (from HousingWire) The result is a nice little boost in the trading markets […]

Warren Buffett & GM’s Bondholders

May 4, 2009


Warren Buffet is an ardent supporter of the Obama Administration, which seems puzzling given his penchant for the free market and capitalism throughout his life.  (Check out Roger Lowenstein’s “Buffett: The Making of an American Capitalist” – definintely a good read…) On the other hand, he’s been extremely charitable throughout his life, giving away most […]

Cheap Credit & the Tragedy of the Commons…

April 15, 2009


On Seeking Alpha today, Paul Kedrosky wrote about how “cheap” credit is affecting the quality of companies emerging from the current economic downturn in his article this morning – “Cheap Credit Means Crummy Companies – Fed Researcher.” This is the same concept as posted yesterday here on The Free Market Voice – “The Stimulus Package […]