Looking Forward to the FOMC Meeting and Beyond: Speculations

Here’s a guess about what the Fed will say Wednesday following the FOMC meeting.  There is no justification for another formal QE program, so I would be very surprised if one were announced (rather than hinted about).  The two main reasons for this view is that the major crisis is in Europe, and the U.S. Federal [...]


Condolences To Mish And Family

Mike Shedlock’s (Mish) wife, Joanne, passed away yesterday from her long struggle with ALS. As a long-time reader of Mish’s blog, I consider him to be a friend and fellow traveler in the world of economics. Mish had let us know recently of her illness and asked for donations to his favorite MLS charity which [...]


World Bank Accentuates the Negative

Currently found only on the sidebar of “Most Popular Stories” on Bloomberg.com after clicking through on one of the lead stories, one finds:  World Bank Cuts Global Growth Forecast as Euro Region Contracts.  Here are some excerpts (emph. added), and note that the stock markets are up despite this report:

The world economy will grow [...]


The Eurocratic Agreement Explained, and Related Observations

I have been trying to find a good description of what actually was accomplished in the Brussels all-nighter, and am happy to pass along a link to an on-line summary of a print piece from Britain’s The Economist, which provides a good summary of many of the main points, plus commentary.  This is a very mainstream publication, so what [...]


KeithGram: Fractional Reserve Banking Is Not The Problem

Mish has a teardown of the latest outrage of Bank of America. It seems BoA’s counterparties are uncomfortable with BoA’s derivatives position and/or equity and would like either more collateral (yeah, right?) or else move the risk to the division which owns the retail banking and deposits from the public.

Moral Hazard: 1


Inflation or Deflation: A Mish Mash

The September Personal Income and Outlays report from the BEA came out last Friday, and according to Mish, I should be howling. More on this in a moment. But, personal income declined slightly MoM, spending was up slightly, and PCE is low. To Mish this signals deflation.

Here’s the data summary:

PCE [...]


Is Mish Correct in Predicting Intermittent Deflationary Periods?

The well-known blogger Mike Shedlock aka Mish predicted that the U.S. will go in and out of deflation in a post yesterday. He writes that “the U.S. will go in and out of deflation for a number of years”.

Is this correct? If so, what are the investment implications?

We can think of deflation two [...]


Fractional Reserve Banking: Some Comments On The Debate

I wish to thank Keith Weiner and Mike Shedlock for their discussion on fractional reserve banking (FRB). For what it’s worth, Mish, I don’t think that Keith got it wrong or that he had intended to write a definitive article on the topic. I appreciate the fact that you have written about duration mismatch over [...]


Fractional Reserve Banking: A Response To Mish

On Tuesday I wrote an article, “Fractional reserve Banking: The Real Story,” in which I discussed the workings of fractional reserve banking. Mish (Mike Shedlock) responded critically to my article on his blog, “Central Bank Authorized Fraud; Fractional Reserve Lending Problems Go Far Beyond “Duration Mismatch“. This post is a response to his comments. I [...]