Another Recap of the Financial Crises
While not increasing general price levels, and while the housing bubble was not universal, loose monetary policy inflated housing markets. Land-use regulations made the bubble worse in some parts of the country. Two more elements were necessary to achieve a level of pain beyond the standard: 1) the addition of [...]
Archive for the ‘Summary’ Category
National Review, October 20, 2008
Posted in Summary on January 17, 2009 | Leave a Comment »
The Wall Street Journal, November 10, 2008
Posted in Summary on January 13, 2009 | Leave a Comment »
Crestor
A statin drug by AstraZeneca, Crestor, reduced the risk of heart-related death, attacks, and problems by 44% compared to a placebo. This will probably change the health strategy employed over the last ten years.
Dell
Compared to its competitors, Dell is late with new products.
Radio
Radio Stations have been historically durable in both up and down times. But, [...]
The Wall Street Journal, November 8-9, 2008
Posted in Summary on January 13, 2009 | Leave a Comment »
Porsche
The vast majority of Germans disapprove of hedge funds and short-selling. Starting in 2005, Porsche used cash-settled options to acquire shares in Volkswagen. As the price rose, these options generated cash for Porsche which it used in turn to buy more cash-settled options. By March 2007, Porsche had acquired 30% of VW. By mid-September of [...]
The Wall Street Journal, November 7, 2008
Posted in Summary on January 8, 2009 | Leave a Comment »
Economy
In every part of the world, central banks cut interest rates in an effort to get ahead of the global economic downtown (predicted to be the worst since World II), but investors are placing their bets that banks will quickly run out of options and leverage. Companies large and small are taking austerity measures to [...]
The Wall Street Journal, November 6, 2008
Posted in Summary on November 8, 2008 | Leave a Comment »
Mr. Obama is picking his team including Mr. Rabm Emanuel as Chief of Staff. Challeges mount — from Russia, Afghanistan, and Democratic leadership in Congress.
Business
His choice of business-friendly advisers suggests Democrats will go slow on controversial labor and regulatory issues.
Health Insurance
Health Insurers are expecting to benefit from expanded federal programs to cover low-income children [...]
The Wall Street Journal, November 5, 2008
Posted in Summary on November 8, 2008 | Leave a Comment »
Sen. Barack Obama was elected the U.S.’s 44th president and the nation’s first African-American president. Democrats control both House and Senate by wide margins, and will probably co-opt one or two Republicans in the Senate to control the 60 seats necessary to overcome the threat of a filibuster.
The rest of today’s issue discusses other election [...]
The Wall Street Journal, November 4, 2008
Posted in Summary on November 8, 2008 | Leave a Comment »
Myths about the Great Depression
Herbert Hoover was a doctrinaire, laissez-faire, look-the-other-way Republican who clung to the idea that markets were basically self-correcting. No. Far from a free-market idealist, Hoover was an ardent believer in government intervention to support incomes and employment. FDR didn’t reverse course. He went further down the path that Hoover had blazed. [...]
The Wall Street Journal, November 3, 2008
Posted in Summary on November 8, 2008 | Leave a Comment »
Another almost-election-day issue. Last minute articles by both Obama and McCain.
The Wall Street Journal, November 1-2, 2008
Posted in Summary on November 8, 2008 | Leave a Comment »
The last weekend before the election, and not surprisingly, the emphasis is on politics: An interview with Palin, and an opinion piece discounting the expected Obama win, “This election is not a mandate for Democratic policies. Rather, it is a wholesale rejection of the policies of George W. Bush, Republicans, and to a lesser [...]
The Wall Street Journal, October 31, 2008
Posted in Summary on November 8, 2008 | Leave a Comment »
Executive Pay
Banks owe executives billions in deferred pay and pensions. The estimated debt to executives for Goldman Sachs, J.P. Morgan, Citigroup, and Bank of America is $11.8, $8.2, $5.0, and $1.3 billion, respectively. Compare this to the capital injected into each bank of $10, $25, $25, and $25 billion, respectively. These obligations should be material [...]
