Archive for the ‘Economic Stimulus’ Category
Posted by Larry Doyle on March 18th, 2009 11:22 AM |
A month or so ago, I introduced former Australian Prime Minister and Treasury Secretary Paul Keating to our readers here at Sense on Cents. Keating offered a wealth of piercing and insightful perspectives on the world of global finance. He forecasted the likely shift of global financial power toward the surplus countries in Asia. While I have never seen nor heard Keating’s views broadcast here in the United States, I appreciated his sobering analysis.
In a similar vein, Canadian Prime Minister Stephen Harper is not exactly a household name in the United States. We were provided the political strappings of President Obama’s initial foreign trip when he traveled to Ottawa to meet Harper 6 weeks ago. The pomp and circumstance along with the Royal Canadian Mounties made for some nice theatre. (more…)
Tags: Canadian Prime Minister Stephen Harper, carbon tax, fiscal discipline, Global Finance, global recession, Paul Keating, Stimulus Plan
Posted in American Consumers, Economic Stimulus, Economy, Obama Administration, Stimulus Plan, Stimulus Tax Package, Wall Street | 2 Comments »
Posted by Larry Doyle on March 17th, 2009 5:15 AM |
I thank our loyal reader in Michigan, Mr. Fiscal Liberal, for sharing with us a piece written by Simon Johnson, the former chief economist of the International Monetary Fund, a professor at the MIT Sloan School of Management, and a senior fellow at the Peterson Institute for International Economics.
Mr. Johnson writes about the growing problems in Europe. I am hard pressed to see how the European situation, both in the East and West, can not end badly. There are too many economies that are effectively insolvent or on the brink of insolvency. I believe this is the region of the world which will experience increased economic strife leading to social unrest and political change. Can the problems in Europe be contained given the massively interconnected world of global finance?
Thank you again FL for sharing this very enlightening piece from Simon Johnson!!
G-20s Real Agenda Should be Saving Europe from Itself
By Simon Johnson
Last Updated: 10:28AM GMT 16 Mar 2009
The media coverage of the G20 finance ministers meeting this weekend was dominated by the apparent battle between those who support more fiscal stimulus and those who want to impose more regulations on the financial system.
This, we are led to believe, is the big debate facing the full G20 heads of government summit early next month: the US is pushing for a bigger global fiscal stimulus (2pc extra government spending from everyone, to be monitored by the IMF), while the continental Europeans are holding out for greater regulation. Gordon Brown is trying hard to cast himself as the broker for any apparent deal. (more…)
Tags: Austria, Claude trichet, ECB, Europe, European Union, fiscal stimulus, G20, Global Finance, Gordon Brown, Greece, Hungary, IMF, Ireland, Latvia, MIT Sloan School, mortgage market, Peterson Institute for International Economics, Real Estate, regulation, Simon Johnson, Spain, U.K., weakest link
Posted in Banking Institutions, Credit Risk, Economic Stimulus, Economy, Employment, Euro, European Union, Global Finance, Government funds, Mortgage Crisis, Mortgages, Risk, Wall Street | 4 Comments »
Posted by Larry Doyle on March 16th, 2009 4:17 PM |
A loyal reader shared with me a recent posting from former Clinton Labor Secretary Robert Reich. Earlier today I cross posted a piece from No Quarter in which Reich was less than complimentary of Secretary Geithner. Well, let’s see what Mr. Reich has to say about President Obama’s economic program: Is Obamanomics Conservative or Revolutionary?
Prior to delving into my thoughts and commentary on Reich (or anybody), I always find it useful to consider the perspective of the writer. In regard to Mr. Reich, let us not forget that Robert Reich Excludes White Male Construction Workers from Obama Stimulus Plan. Utilizing that perspective, Mr. Reich would be considered to be more than slightly left of center. Additionally, in considering the Obama economic plans, I think it is critically important to incorporate the economic plans and agenda of the Democrats in Congress. These Congressional leaders have a major influence in this process. These Democrats, including David Obey (D-WI), Nancy Pelosi (D-CA), Harry Reid (D-NV), Barney Frank (D-MA), Chuck Schumer (D-NY), Chris Dodd (D-CT), and Steny Hoyer (D-MD) amongst others are major players in the stimulus, budget, and Omnibus bill that have come down from Congress. It is not totally clear where the lines are drawn between the White House and Congress on all the economic issues. That said, let’s see what Mr. Reich has to say and then critique his assessments of Obamanomics. (more…)
Tags: Barack Obama, Barney Frank, cap and trade, Chris Dodd, Chuck Schumer, David Obey, Democrats, Education, Harry Reid, Nancy Pelosi, Obamanomics, Reaganomics, regulatory structure, Robert reich, Steny Hoyer, taxes, Tim Geithner, universal health care, vouchers
Posted in American Consumers, Barack Obama, Christopher Dodd, Chuck Schumer, Commerce, Congress, Current Affairs, Democratic Party, Economic Stimulus, Economy, Education, Employment, Equity Markets, Nancy Pelosi, Obama Administration, Real Estate, Republicans, Risk | 4 Comments »
Posted by Larry Doyle on March 16th, 2009 8:44 AM |
Cross Posted from No Quarter!! Thanks!
Major h/t Andy!!
Since this pretty much speaks for itself, I’m just going to step out of the way.
From Robert Reich’s Blog:
(Robert Reich was the nation’s 22nd Secretary of Labor and is a professor at the University of California at Berkeley. His latest book is “Supercapitalism.” This is his personal journal.)
FRIDAY, MARCH 13, 2009
Paul Volcker to Barack Obama
Former Fed Chair Paul Volcker is briefing President Obama today on how well the stimulus package is doing. I have no inside knowledge of what he’s saying, but if I were Volcker (and I’m not — he’s almost two feet taller than I am), I’d say the following:
Mr. President, it’s way too early to know exactly what the stimulus is doing because the money is barely out the door, but I’ve got to tell you I’m worried as hell. Unemployment is at 8 percent, and underemployment is over 14 percent of the workforce. The economy is shrinking much faster than it was when you put the stimulus together. It will be more than a trillion dollars short of its full capacity this year, and I have every reason to believe the same next. State governments alone are hundreds of billions in the hole, creating a huge drag. So your $787 billion over two years, only two-thirds of which is direct spending, isn’t going to get us nearly far enough. I’d strongly recommend you make ready a second stimulus, about the same size, and get it enacted as soon as possible, with the proviso that it will be implemented if and when unemplyment hits 8.5 percent or underemployment reaches 15 percent.
Oh, and by the way, Mr. President. You may not want to hear this, but your Treasury Secretary is making things worse. His dithering on what to do about Wall Street, and his incapacity to speak clearly to the Street and to the public about what needs to be done, is spooking everyone. Why doesn’t he just put the irrevocably insolvent banks into receivership under the FDIC, sell off their assets, protect depositors, and reimburse taxpayers with whatever remains? Let the rest of the banks fend for themselves — working out their bad loans with their creditors. As to AIG, well, that’s a complete basketcase. Put it out of its suffering. Take it over, sell its assets, protect policy holders (you’ll need to create a big co-insurance plan with every other major insurer in the world), then get out.
Want a cigar?
I don’t smoke, but a cigar and a health shot of tequila is sounding good about now. And it couldn’t make the sick feeling in the pit of my stomach any worse.
Tags: AIG, Barack Obama, FDIC, Paul Volcker, Robert reich, stimulus, Tim Geithner, underemployment, Unemployment
Posted in Barack Obama, Economic Stimulus, Economy, Employment, General | 8 Comments »
Posted by Larry Doyle on March 15th, 2009 7:30 PM |
SAME GREAT SHOW, BRAND NEW NAME! Join me this evening from 8:00 to 9:00 p.m. ET on No Quarter Radio for Sense on Cents with Larry Doyle. These are truly historic times in the global economy. Let’s “navigate the economic landscape” without the pandering or nonsense found elsewhere! With the stock market near 12 year lows, what is driving the flows? What is truly going on in the economy? Where are markets headed? What is happening in Washington and how is that impacting Wall Street? So much to cover.
The developments in the markets, economy, global finance, Wall Street, and Washington are occurring at breakneck speed. I will try to slow things down a bit and provide a sense of perspective. What did we learn in the markets over the last week and month and what do they mean for the weeks and months ahead? What is happening overseas and how does that impact us here at home? What is happening in the municipal sector and how will that impact the markets and our personal finances?
(more…)
Tags: Economy, No Quarter Radio
Posted in American Consumers, Current Affairs, Economic Stimulus, Economy, General, Global Finance, No Quarter Radio, Wall Street | No Comments »
Posted by Larry Doyle on March 12th, 2009 7:07 AM |
At the core of most, if not all, of our economic problems lies housing. I do not need to replay the tape of low rates, shoddy underwriting, and Wall Street securitizations that all played a dramatic role in creating a bubble the likes of which we have never seen and hopefully never will again. All that said, housing is an enormous market with a wide array of factors impacting it. How does one track it? Are we supposed to rely on our local brokers telling us things feel better? Should we ask contractors if they are bidding on jobs? Dare we rely on our local or national media outlets to provide their expertise and pandering? If we did, housing may have bottomed 14 different times in the last 10 months. In all seriousness, how can we track housing? Welcome to Sense on Cents.
There are two indexes that have developed over the last few years and are enormously respected by market participants. One index, the S&P/Case-Shiller Home Price Indexes, is released on a monthly basis. This index tracks a variety of regions in the country but not every region. Still, all things considered, this index is widely watched as a reliable indicator of health in housing. The index is typically released toward the end of each month. The most recently released report was on February 24th, A Look at Case-Shiller Numbers, by Metro Area. In this report, all indications are that housing has yet to see any support. (more…)
Tags: ABX, Case-Shiller, Economy, housing, Real Estate, stock market, Tim Geithner, Wall Street
Posted in American Consumers, Economic Stimulus, Economy, Employment, Equity Markets, Home Loan, Housing Crisis, Mortgage Crisis, Mortgages, Real Estate, Stimulus Plan, Wall Street | 11 Comments »
Posted by Larry Doyle on March 10th, 2009 2:37 PM |
The stock markets are having a very robust, broad based rally today. All major market averages are up almost 5% or better. Gold is down approximately 3%. Foreign stock markets also had significant rallies. Can we put this pain behind us? Is it finally over?
In dealing with markets and the economy, it is never over. The critical, mental acuity in dealing with the markets and economy is understanding the dynamics at work and the associated risks. Along with a host of other goals, I firmly hope that my work here at Sense on Cents is able to help people understand those dynamics and the accompanying risks. It is a process, but I will keep after it and I hope you find it enlightening and informative. If so, please comment and share Sense on Cents with your friends. (In fact, you can share this piece, and any other piece here at S o C by using the “ShareThis” link underneath the title line of each story). Let’s assess today’s market action. (more…)
Tags: day trading, earnings, Economy, EU, foreign stock markets, global economy, gold, government bonds, housing, Martin Feldstein, rallying market, Risk, Sense on Cents, Unemployment, Vikram Pandit
Posted in American Consumers, Business, Citigroup, Commerce, Credit Risk, Economic Stimulus, Economy, Employment, Equity Markets, European Union, Global Finance, Housing Crisis, Insurance Industry, Real Estate, Risk, S&P 500, Stimulus Tax Package, Wall Street | 8 Comments »
Posted by Larry Doyle on March 10th, 2009 11:19 AM |
I very much appreciate reading material written by people whom I perceive as having no agenda. I have tried to bring people like this (including Ray Dalio, Paul Keating, Bob Rodriguez, Steve Rehm, Kevin Doyle, Vaclav Klaus, and many others) to Sense on Cents because I firmly believe we all become more educated and informed in the process. Please let me know if and when you perceive me, any of the pieces to which I link, or radio guests on NQR’s Sense on Cents as not dealing totally in the truth. Constructive criticism is always appreciated and will make for a better site.
Along with the aformentioned, I have also previously remarked on my high regard for John Mauldin, one of our Economic All-Stars. John himself possesses an insightful global perspective and has a circle of friends and confidantes that are simply off the charts.
In John’s weekly Outside the Box, he shares with us the perceptions of Michael E. Lewitt. Mr. Lewitt writes at length on topics we have covered here previously, but his level of detail and thoughtful analysis are well worth the read.
Topics covered include: (more…)
Tags: Bank Nationalization, bankruptcy, Bob Rodriguez, depression, eastern Eurrope, economic policies, GM, John Mauldin, Kevin Doyle, market outlook, Merrill LYnch, Michael Lewitt, Obama budget, Outside The Box, Paul Keating, Ray Dalio, recession, Steve rehm, Vaclav Klaus
Posted in American Consumers, Auto Industry, Bailout, Bank Nationalization, Banking Institutions, Barack Obama, Bob Rodriguez, Business, Commerce, Economic Stimulus, Economy, Education, Employment, Equity Markets, Obama Administration, Risk, Stimulus Plan, Stimulus Tax Package, Unemployment, Wall Street | 6 Comments »
Posted by Larry Doyle on March 5th, 2009 12:45 PM |
I had written that yesterday’s 2-3% upward move in the market was very likely a Dead Cat Bounce. Well, that cat is burrowing further into the ground as markets have more than fully retraced yesterday’s upward move and are making new lows. This type of price action, known as lower highs and lower lows, confirms bearish trends.
I hope our readers know that all financial information you could possibly want is on the Market Data tab on the Sense on Cents header. That resource provided by the Wall Street Journal is not only a great way to get a quick and comprehensive snapshot of all sectors of the market, but also a great way to keep your brokers and financial planners on their toes and working for you!!
Let’s take a quick look at the markets and then I will offer some commentary. (more…)
Tags: 2nd liens, banks, bonds, brokers, China, commercial real estate, commodities, corporate bonds, financial information, financial planners, GE Capital, General Electric, insurance companies, loan modification, market data, municipal bonds, Nouriel Roubini, stocks, trends, Wall Street Journal
Posted in China, Commerce, Congress, Current Affairs, Deficit, Economic Stimulus, Economy, Education, Equity Markets, Housing Crisis, Infrastructure, Insurance Industry, Mortgage Crisis, Mortgages, Real Estate, Unemployment, Wall Street | 1 Comment »
Posted by Larry Doyle on March 2nd, 2009 4:24 PM |
On the heels of the news about AIG, Berkshire, and HSBC, the equity markets have found no support today and are down 4%. While the malaise of the markets has much of the focus, let’s review a few other items that I see on today’s menu:
1. In regard to AIG, current CEO Edward Liddy and former CEO Hank Greenberg have started some public feuding over the nature of AIG’s problems. Greenberg is trying to make the case that the risks underwritten at AIG occurred after his departure. Liddy responded that the culture, the compensation system, and the division housing the bulk of AIG’s risk all developed under Greenberg. Wow!! When our country is screaming for leadership, we have senior executives playing the blame game and pointing fingers. How pathetic!! (more…)
Tags: 12th Street Capital, AIG, Berkshire Hathaway, California housing, CMBS, compensation, consumer finance, DJIA, economic activity, Economy, Edward Liddy, Hank Greenberg, housing, HSBC, Risk, RSI, Washington D.C.
Posted in Bailout, Banking Institutions, Business, Commerce, Credit Risk, Current Affairs, Deficit, Economic Stimulus, Economy, Employment, Equity Markets, General, Global Finance, Government funds, Housing Crisis, JP Morgan, Mortgage Crisis, Mortgages, Real Estate, Reputation, Unemployment, Wall Street, Warren Buffet | 8 Comments »
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