Greenspan, Out Of Touch With Reality, Prattles On
Now that Alan Greenspan has returned from his book tour, he spends his days at the race track. His family pins a note on his shirt so that the other patrons know where to…
Economy
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Newest first · Page 409As Inflation Rises, Productivity Moves In To Save Economy
The market took the UPS (UPS) news hard. High fuel prices and slowing customer demand made the company cut its earnings forecasts, just as rival Fedex (FDX) did a week ago. According to MarketWatch:…
The Fed: Raising Rates To Make The Consumer Feel Better
The Fed could raise rates to make the consumer feel better. Lowering rates has not helped him. As the agency has cut interest rates to moderate the credit crisis, banks and brokerages have been…
Raising Rates At The Fed, Bernanke’s Limo
"We have nothing to fear but fear itself."–FDR The Fed can now fear inflation or it can fear a worsening credit crisis. The conventional wisdom is that it can only fix one. As things…
Banks And Airlines Battle To Find Bottom (WB)(WF)
Late news from the bank and airline industries found analysts in surly moods. Goldman Sachs issued a report saying US banks will have to raise as much as another $65 billion. According to Reuters,…
Inflation Burns Like A Hay Barn, 5% Or Bust
In the UK, inflation was up enough in May to put the annual run-rate at 3.3% The Bank of England promptly took a look at those numbers and said inflation in the second half…
As Foreclosures Rise 50%, Turnaround Moves Beyond Horizon
US home foreclosures moved up 49% in May, compared with the same month a year ago. Figures from RealtyTrac show that "One in every 483 U.S. households received a foreclosure filing in May," according…
Small Businesses Hit By Credit Environment
The Small Business Administration’s most popular small-business loan is down 19 percent nationally in volume from the same time a year ago, based on agency data. According to the St. Louis Post-Dispatch "The reason…
Our Man Greenspan: On The “Bubble” Watch
Alan Greenspan has frightened away the specter of economic "bubbles." He spoke and the economy must obey. According to Reuters, the former Fed head said "he does not expect another "bubble" in world markets…
Interest Rates: Chaos Theory Seizes Economic Policy
According to chaos theory systems that exhibit mathematical chaos are deterministic and are therefore orderly in some sense. Interest rates share something in common with that definition. Lowering interest rates is supposed to put…
Housing And Consumer Confidence: A Day Without Sunshine
Wall St. could read the headlines one-by-one or taken together. Together, it was not a terribly good day. Consumer confidence plunged unexpectedly to its lowest in 16 years in May. According to Reuters "The…
A Crippling Year For Small Business: Few Sales, Tough Cash Flow
Small businesses think the economy is falling apart with little light at the end of the tunnel. The Discover’s Small Business Watch index of confidence showed that "only 28 percent of business owners said…
On The Recession Watch: More Drivel From Greenspan
Alan Greenspan, Warren Buffett, and George Soros have made a cottage industry from commenting on the odds for and state of a recession. None of them needs money for his comments, so they must…
FOMC Rate Cuts Game Over, Next Move Up
If you look over recent fed governor speeches from just last week, thetalk is on no more cuts and that rates have come down. Speeches fromFOMC Vice Chairman Donald Kohn and San Francisco president…
Buffett Calls For Colossal Recession
Warren Buffett has decided not pull his punches about how bad things are going to get in the US. Speaking of the economy, Reuters quotes him as saying "But the people are already feeling…