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Making a Bad Situation Badder
Annapolis, Maryland The Dow sank 344 points yesterday. Oil fell $1.46. The dollar rose to $1.43 to a euro. And bonds went up; the 10-year T-Note now yields only 3.64%. But we’re ...
Read more » | Date 05-09-2008
Enough Bad News. It’s Time To Take Action
What a week, eh? No, scratch that! What a month... in fact, what a year! Yes, this economic débâcle has been quite exhausting. Keeping up with it has been a nightmare - not least ...
Read more » | Date 05-09-2008
Bonds, Stocks and Cash Offer No Margin of Safety
Annapolis, Maryland Not much action in the markets yesterday...but we don’t have any time to reckon with it anyway. Gold plunged all the way down to $806. Now analysts are starting to ...
Read more » | Date 04-09-2008
Why Mervyn’s "snowball" Could Flatten The Pound
The following is a metaphor. On 21 April 2008, Bank of England governor Mervyn King stood at the top of a steep, snow-covered hill. He rolled some snow into a snowball, placed it on ...
Read more » | Date 04-09-2008
Can Telling A Lie Save The Economy?
Theo Casey and I have been taken to task by a reader. He writes: "Please, don't encourage politicians to lie or be economical with the truth. It should not be acceptable to let them ...
Read more » | Date 03-09-2008
£1.6 billion to keep Gordon in a job
The government has announced a trio of measures to boost the housing market. But the moves are motivated by political — not economic — considerations. If anything, these ‘solutions’ ...
Read more » | Date 02-09-2008
Getting in Line for a Bailout
Aiy! We arrived in London this morning, greeted by a dark sky, rain and wind. Ah, the summer... we hardly knew ye... What a delightful summer it was! (More below...) The weather never ...
Read more » | Date 02-09-2008
Alistair Darling Should Be More Like The Men In Black
I’m almost tempted to feel sorry for Alistair Darling. For months he’s been mocked (by me among others) for failing to fully acknowledge the magnitude of the economic crisis. Yet now ...
Read more » | Date 01-09-2008
There Are A Lot Of Ways To Ruin Yourself
Paris, France It is Labor Day in the United States of America. The country is taking the day off, in honor of the toiling masses. Since almost everyone toils in some way or another, ...
Read more » | Date 01-09-2008
Badness in economic terms means either inflation or deflation – or both
Ouzilly, France What are we reckoning with today? “Market buoyed by strong GDP report,” says a headline. Yesterday, the Dow managed a strong rise – up 212 points. Oil fell back to ...
Read more » | Date 29-08-2008
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