Notes on the Economy June 23, 2011 A headline in the Wall Street Journal (4/24 C1) read “An Uptick in Loans Could Aid Businesses”. This lead reflects the mistaken view pervading thinking on Wall Street and in Washington D.C. that a major reason for the slow economic recovery is that …(Read More)
A Panel with William Dunkelberg and Thomas Patrick Burke William Dunkelberg’s Notes on the Economy Excerpt “An uptick in…lending could help businesses expand and reduce employment,” says the report, reflecting the view that it is credit supply that is the problem. The banks mentioned in the article are all of the “biggies” …(Read More)
Should Unions Have the Power to Tax?Whatever the circumstances, it is not acceptable for a group of people to “gang up” on an individual with the intent of doing harm.Probably everyone would agree as applied to “physical” harm.But what about “financial” harm?We have laws that prevent firms from exercising monopoly …(Read More)
Competing with Handicaps President Obama is right, it is our “entrepreneurship” that sets us apart and is the driver behind our success as a nation. And we do have some of the very best “entrepreneurial athletes” in the world and they love to compete in the “global economic Olympics”. What …(Read More)
Ben, be careful what you ask Santa for(or “Are current low inflation rates structural, posing a risk of deflation, or cyclical, and about to reverse without a boost from QE2?)Although not “official official”, it appears that the FOMC has adopted a policy goal of 2% inflation, characterized by one member …(Read More)
The Financial Crisis 1.When the financial crisis struck in the fourth quarter of 2008 and our leaders warned of the risk of a depression, consumers reacted in a totally logical way – they voted in a new management team for USA Inc. in the election and raised their saving rate …(Read More)
Treasury Dept. and Small BusinessThe Treasury Department has just announced a new program to encourage lending to small businesses, the State Small Business Credit Initiative. Selected states can access the $1.5 billion fund if they can demonstrate that each dollar provided by the Treasury will generate $10 in loans to …(Read More)
1. NO BOTTOM LINE RESPONSIBILITY = FINANCIAL CRISISCities, states and countries are now facing serious fiscal problems which arise from the simple fact that public managers face no bottom line accountability. Managers, with horizons driven by election cycles, not the longer term interests of the “company”, too easily cave in …(Read More)
The U.S. economy officially “peaked” in December of 2007. 18 months later, the economy was still shrinking. Although it appears that the bottom was reached mid-summer and third quarter growth will be positive, the recession was the worst since the Depression and the road to recovery is strewn with weak …(Read More)
1. Health Care: What Do We Want and Can Congrees Deliver It? The debate over health care “reform” has been confusing indeed and its meaning seems to have eluded even those who are attempting to write the legislation that is supposed to “reform” the system. For some, this is about efficiency, …(Read More)