One area I haven't commented on much is the ongoing European "debt crisis". The Greek debt crisis is a part of it, but it's only the tip of the iceberg. The roots are much deeper. One reason I haven't commented is because it's fairly complex and requires a lot of background explanation which I haven't … Continue reading Warning: More Bank Bailouts Possible
Just a quickie to bring your attention to this, yesterday's close on the U.S. Government bond market as reported by Google Finance. Note the 10 year bond - less than 2%. Bond Maturity Yield (effective interest rate) change in points(percent) 3 Month 0.01% 0.00 (0.00%) 6 Month 0.04% +0.01 (33.33%) 2 Year 0.19% +0.01 (5.56%) … Continue reading US Government Bond Market & Interest Rate Watch – No Signs of Worry Over Deficits, Inflation, or Default
The debt-ceiling circus in Washington continues as I write this. The Republicans seem bound and determined to ruin the "full faith and credit" of the United States, while President Obama is frustrated that the Republicans won't accept his deals to cut Social Security and Medicare. None of this is necessary. We don't need a debt … Continue reading Debt-Ceiling: An Absurd, Unnecessary Law
I don't enjoy scary movies. Never have. I also don't enjoy scary "amusement" park rides.* I know I'm kind of a fluke in our U.S. culture this way. I just find that there's enough excitement, thrills, and fright in the real world if you just open your eyes. An example of real world things to … Continue reading This Is No Movie Folks. It’s Real and It’s Scary.
In the current media- and pundit-manufactured hysteria about the government budget deficit and sovereign debt, much has been made of a relatively recent book by Rogoff and Reinhart. It purports to find patterns of default by surveying 800 years of sovereign defaults. R&R conclude that somehow, magically, an 80% debt-to-GDP ratio will virtually ensure sovereign … Continue reading Debts & Deficit Are Not A Problem (until you reach full employment)
Well, so much for the idea that the foreclosure crisis is /was due to those "irresponsible low-income people buying stuff they can't afford". It seems the rich are even less responsible: the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population. More than one in seven homeowners … Continue reading Seems the Rich Default Even More