Economy
Mohamed El-Erian: How to handle the sovereign debt explosion
One thing I’ve learned about the PIMCO folks is that they understand the big picture. They are able to spot emerging economic trends to predict where the world is headed. Often, people get caught up by the individual pixels that they fail to see the complete image. You don’t need to know how many... »
Low Says U.S. Will See Job Growth in Next 2-3 Months: Video
Christopher Low, chief economist at FTN Financial, talks with Bloomberg’s Jon Erlichman about the Bloomberg Professional Global Confidence Index, which fell to 53.8 in March from 54.9 last month. »
Dylan Grice, Popular Delusions (March 8)
More on Japan’s ‘brewing fiasco’…brought to you by the (in)famous Dylan Grice. (He’s not the only one talking about the potential inflection point in Japan’s debt capacity.) »
Don Coxe: Basic Points Feb 2010
Hard Rocks and Hard Shocks »
Growing to Extinction
Here are some interesting facts found within Bill McKibben’s book, Deep Economy: The Wealth of Communities and the Durable Future: - The average bite of American food has traveled 1,500 miles and changed hands 6 times before it reaches your mouth. - The average new home size has doubled since 1970. - Only 22% of the energy... »
Housing Is “In a Precarious State,” Yale’s Robert Shiller Says
A 10-20% drop from here would be disastrous for bank balance sheets and the US economy. Cross your fingers that recent weakness in the housing numbers is simply a seasonal blip. »
Charlie Rose Interviews Elizabeth Warren
“I am afraid. I’m afraid because of what I see in the real economy. I’m afraid because I don’t see books that are clean, balance sheets that have been cleaned up. I’m afraid because in October of 2008, Secretary Paulson came to the American people and he said the problem is... »
Andy Xie: A Change of Mindset
As many have said before him, Andy Xie argues the stimulus packages have simply pushed true economic reform into the future. Post bubble economies need time to heal – the bigger the bubble, the more time required. When economists talk about withdrawing stimulus, they point to Japan. Japan began to reign in spending during the... »
UK Politics Intensifies Budget Crisis
“If you really want a fiscal problem, look at the U.K.,” said Mark Schofield, a fixed-income strategist at Citigroup. “In Europe, the average deficit is about 6 percent of G.D.P. and in the U.K. it’s 12 percent. It is only just beginning.” The recent political maneuvering in England is only making things worse, pushing the... »
CBO Ups Deficit Estimates –> 90% of GDP by 2020
Guess what…what was once a terrible forecast that included a decade of deficits is now officially worse. The CBO ups its deficit forecast, raising the US debt estimates from 67% of GDP in 2020 to 90% of GDP by 2020. I expect more upward revisions in the future. CBO Letter March 5 »