Monthly Archives: March 2014

Message to the Fed: Here Are a Few Things That You Can’t Do

[A]sset purchases are not on a preset course, and the Committee’s decisions about their pace will remain contingent on the Committee’s outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of … Continue reading

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Corporate Capex Fallacies and Why You Shouldn’t Rely on CNBC

We get experts on everything that sound like they’re scientific experts … They’ll sit at a typewriter and make up all this stuff as if it’s science and then become an expert … Now, I might be quite wrong, maybe they … Continue reading

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Did Today’s Flow of Funds Report Predict the Fed’s Next Confession?

In return for speaking fees reported to be “at least” $250,000, Ben Bernanke confessed a few of the Fed’s missteps while speaking to guests of the National Bank of Abu Dhabi on Tuesday: “Bernanke says he underestimated impact of subprime … Continue reading

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What Needs to Happen Before We See a Big Recovery?

In a Bloomberg article last May, Caroline Baum summed up the economy nicely in a single question: Four-and-a-half years of an overnight rate near zero and aggressive securities purchases by the Fed have succeeded in raising asset prices. The question … Continue reading

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Preparing for Obama’s 2015 Budget with a Chart and a Toy

The goal that was identified by Simpson-Bowles was to reduce the deficit as a percentage of GDP to below 3%, but what our budget projection shows is that over the course of the next ten years (or in ten years) … Continue reading

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