Posted by
Doug Wolkon on January 7, 2009 at 8:51 am
So what is an Economic Detox? Raw green vegetables consumed through a straw is the food equivalent. Think diarrhea. I know what you are thinking, “yuk”. But as Wall Street has learned the hard way, we have no choice in the matter. Our economy is detoxing whether we like it or not; dropping our excess weight in order to regain our balance; flushing our obese corporate and government costs down the toilet in support of the long-term prosperity of the quicker, lighter, faster and more profitable Mom and Pop entrepreneurs. Continued »
Posted by
Doug Wolkon on April 13, 2008 at 9:40 pm
The word “balance” has significant meaning here. When you take something “off-balance,” you are doing just that. In other words, balance is good (think yoga or buddhism), off-balance (think checkbook) is not good. On that note, what do you call Fannie Mae, Freddie Mac and Sallie Mae. Do they qualify as “off-balance sheet financing?” How about the Bear Stearns portfolio. The U.S. government did about 36 hours of due diligence on that one, is that one off-balance sheet too? Continued »
Posted by
Doug Wolkon on March 10, 2008 at 10:48 am
Dramatic unemployment increases in financial services, construction and autos will be the real shoe to drop. Who will pay for all these billions of dollars of writedowns? Oh, I forgot, the Fed has the ability to actually print more food and oil - yeah right, was Bernanke ever taught the first rule of Economics: Land is Scarce.
So how much of our newly printed paper is currently being bought by our social security system - talk about drinking your own blood. The welfare state will inevitably be forced to solve their huge inefficient costs of entitlements and armed forces. Continued »
Posted by
Doug Wolkon on February 11, 2008 at 10:40 pm
Any derivatives of $1 as currency increases our financial service costs (i.e. in the form of complicated accounting and just plain time to figure out the math at time of purchase). Economically speaking and unfortunately to all you labor, it allows labor time to be denominated down as math, not value. Continued »
