Description: U.S. President Barack Obama and his administration weakened the country’s economy by seeking to foster growth instead of paying down the federal debt, said Nassim Nicholas Taleb, author of “The Black Swan.†Source: Bloomberg.com  Date: 09/25/2010 Link: http://www.bloomberg.com/news/2010-09-25/-black-swan-author-taleb-says-obama-s-stimulus-made-economic-crisis-worse.html Questions for discussion: What is the basis of Taleb’s criticism of government handling of the… Read more »
Posts Categorized: Governments & Regulators
Bernanke Shadow of Easing Limits BOJ Success With Yen Weakness
Description: Bank of Japan Governor Masaaki Shirakawa’s success in weakening the yen may hinge on Ben S. Bernanke. Japan said two days ago it sold yen for the first time since 2004 because the currency’s surge to a 15-year high versus the dollar imperiled the nation’s export-led recovery. Meantime, pressure is growing on U.S. Federal… Read more »
After the Financial Meltdown, Where’s America’s Outrage?
Description:Â Andrew Ross Sorkin of The New York Times noted that 49% of people surveyed had a negative view of Goldman Sachs. Financial companies are busily trying to rebuild their reputations by, among other things, running lots of advertisements touting their lending activities, but numerous reports show that banks are cutting credit lines to both… Read more »
Japan Has More Than Just a Yen Crisis
Description: The currency crisis is merely one symptom of the country’s general aversion to change after the boom-and-bust 1980s. Source: Businessweek.com Date: 09/02/2010 Link: http://www.businessweek.com/magazine/content/10_37/b4194007896491.htm Questions for discussion: Summarize the analysis of Japans economic situation. What are the historical reasons that explain how this present condition came about. Do you agree with the analysis presented and… Read more »
Treasury 10-Year Notes Decline, Yield Curve Steepens on Increase in Jobs
Description: Treasury 10-year notes and 30-year bonds dropped for a second week for the first time since April as a bigger-than-forecast gain in company payrolls eased concern the U.S. economy was falling into another recession. Source: Bloomberg.com  Date: 09/04/2010 Link: http://www.bloomberg.com/news/2010-09-04/treasury-10-year-notes-decline-yield-curve-steepens-on-increase-in-jobs.html Questions for discussion: Summarize the arguments that attempt to explain the meaning of… Read more »
Treasury Two-Year Yields Increase Most Since April After Bernanke Speech
Description: Treasuries dropped, pushing two-year note yields up the most since April, after remarks from Federal Reserve Chairman Ben S. Bernanke tempered speculation that the central bank will step up debt buying. Source: Bloomberg.com Date: 08/28/2010 Link: http://www.bloomberg.com/news/2010-08-28/treasury-two-year-yields-increase-most-since-april-after-bernanke-speech.html  Questions for discussion: Summarize the recent activity in treasuries and the bond market. What do you… Read more »
United-Continental Merger Clears Federal Hurdle
Description: The Justice Department said late Friday that it had cleared the planned $3 billion merger between United Airlines and Continental, lifting the biggest regulatory hurdle to the creation of the world’s top airline. Source: NYTimes.com Date: 08/27/2010 Link: http://www.nytimes.com/2010/08/28/business/28air.html?ref=business Questions for discussion: Do you believe that the stocks and bonds of this new airline will… Read more »
Reagan insider: ‘GOP destroyed U.S. economy’
Description:   “How my G.O.P. destroyed the U.S. economy.” Yes, that is exactly what David Stockman, President Ronald Reagan’s director of the Office of Management and Budget, wrote in a recent New York Times op-ed piece, “Four Deformations of the Apocalypse.” Source: Marketwatch.com   Date: 08/10/2010 Link: http://www.marketwatch.com/story/reagan-insider-gop-destroyed-us-economy-2010-08-10?pagenumber=1 Questions for discussion: Summarize the comments made in… Read more »
Afraid of Deflation? Try Some Medicine
Description: AS chatter has grown about the possibility of a double-dip recession, so, too, have fears about another “D†word: deflation. Source: NYTimes.com  Date: 08/07/2010 Link: http://www.nytimes.com/2010/08/08/business/economy/08fund.html?ref=business Questions for discussion: Summarize the arguments presented in this article? Do you believe we are going to experience unusual levels of inflation or deflation? Which investing strategies… Read more »
Economic Indicator: Even Cheaper Knockoffs
Description: In this economy, even counterfeiters are trading down. Source: NYTimes.com  Date: 07/31/2010 Link: http://www.nytimes.com/2010/08/01/business/economy/01knockoff.html?ref=business Questions for discussion: What are the reasons presented for the move towards cheaper knockoffs? What can firms do about this problem? How does this problem affect cash flow? Explain how this activity can be an economic indicator?
