The systemically dangerous institutions (SDIs) are inaccurately called “too big to fail” banks. The administration calls them “systemically important,” and acts as if they deserve a gold star. The ugly truth, however, is what Wall Street and each administration screams when the SDIs get in trouble. They warn us that if a single SDI fails … Read more
Today Ben Bernanke added his voice to those who are worried about Europe’s debt crisis. But why exactly should America be so concerned? Yes, we export to Europe – but those exports aren’t going to dry up. And in any event, they’re tiny compared to the size of the U.S. economy. If you want the … Read more
In an interview from late September, Zulauf tells James Turk that he is very much a eurosceptic. The external imbalances in the euro zone make the euro an untenable currency union. Like David Blanchflower, Zulauf remarks how markets are leading European policymakers. Zulauf believes that this is what is behind the European bank run now … Read more
This stunning factoid was reported in DS News last week and appears not to have gotten the attention it deserves. A mid-September survey ascertained that a full one third of Americans were living paycheck to paycheck, and if they lost their job, they would not be able to make their next rent or mortgage payment. … Read more
The CIA has been called-in to investigate. Some have said that this is a secret code, perhaps signaling comrades for an as-yet-unknown assault on Wall Street. Investigators believe the photo might have been taken inside one of the Wall Street firms, indicating the “Wall Street Twins” might have infiltrated the inner sanctions of Wall Street, … Read more
We recall the day’s when missteps were as simple as hearing Bobby telling Peter Brady “mom always said don’t play ball in the house.” Unfortunately for investors we are no longer talking about gluing back together a vase but rather the large task of putting a significantly more fragile Humpty Dumpty (global confidence) back together … Read more
From Bloomberg — by Stefania Bianchi Europe must raise the amount of funds it has earmarked to arrest its fiscal crisis and deploy a 2 trillion-euro ($2.7 trillion) “bazooka” before time runs out, said Nouriel Roubini, chairman of Roubini Global Economics LLC. “I’m very concerned of things getting out of control,” Roubini said in an … Read more
Last week, we heard Europe was to blame for US economic woes. The President said that “some of the challenges that we’ve had over the last several months actually have to do with the fact that in Europe we haven’t seen them deal with their banking system and their financial system as effectively as they … Read more
I just returned from a trip to New York, where earlier last week I gave a talk at the Council on Foreign Relations. The topic was the question on everyone’s mind these days: the outlook for China’s economy.Over the past several weeks, a number of news reports and market figures have caught my attention, which appear to … Read more
As they say, third time is the charm: Once again, I am writing about Istanbul’s financial center prospects. The column below appeared in Friday’s Hurriyet Daily News. I originally wrote a longer version of the column, which was supposed to be published for distribution at the G-20 Meetings in Istanbul in November. That project was … Read more