Estimating GDP is like pinning the tail, somewhere, on the donkey
Wall Street hangs on every number published by any government agency as if they are accurate to the 3rd decimal place. The fact is, most are estimates, especially the GDP number. On top of this, the seasonal adjustment process probably was key in understating economic activity, and this GDP number is most likely going to be […]
Was Bank of America’s $4 billion error really an error?
The BofA so-called $4 billion “error” in its stress test calculations is, in my view, another sign of overbearing government regulations and their negative impact on the marketplace. The “error” was in the calculation of capital it would have under the Federal Reserve’s onerous stress test. Apparently, the capital requirements of the Basel III regulatory […]