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May 2012

Too Big to Fail: Four Years Later, Things Are Riskier Than Ever

The turmoil in Europe, trading losses at JPMorgan (JPM), and recent revelations about naked short-selling by Goldman Sachs (GS) and Bank of America-Merrill Lynch (BAC) should be giving every American and every policy maker heartburn because each and every one of these issues has potential to cause systemic financial shocks. It all ultimately comes down to the continuing saga of “Too Big to Fail,” or TBTF. TBTF nearly brought the …Read More

Rebellion Against Austerity From Greece To Washington

Since the initial euro crisis erupted in Greece two years ago, I have speculated that the necessary move toward austerity would be sidetracked by a political response from the impacted populations, which would elect leaders who promised a move away from such austerity. I didn’t realize how rapid and rabid the response would be. The table below shows a list of headline anti-austerity movements, and, yes, I’ve included such movements …Read More

Chained-CPI is not an accurate deflation gauge

Circulating around the Beltway is a concept called Chained-Consumer Price Index (Chained-CPI). It is being billed as a new and “more accurate” way to measure the rate of inflation.In an April 25th article, the editors of Bloomberg View stated that the Chained-CPI “is a more accurate gauge of U.S. inflation that would yield immediate savings … The fix to this has already been endorsed by lawmakers in both parties, the …Read More