The FDIC Situation

Ever so often I come across a story concerning the FDIC and its wherewithal to be able to cover its potential commitments. It appears to be exceedingly thinly funded in relation to potential liabilities.  This may not be a big issue going forward if the economy improves; however, it could become a very large issue …

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“Quick Fixes” To Balance State Budgets

I wanted to briefly comment on this recent (July 17) Wall Street Journal article that mentions how Illinois and California are working to “balance” their budgets: http://online.wsj.com/article/SB124776520979752661.html The article brings to mind a term that I have used before, “quick fixes.”  Sadly, some of the means by which these budgets are apparently being balanced might …

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Clarification of a Phrase

I would like to quickly clarify a phrase I have been using on this blog… The phrase is “this period of economic weakness.” The reason I use the term is that, as I have explained in this prior post: https://www.economicgreenfield.com/2009/06/22/are-we-in-a-depression/ that our current economic environment is difficult to classify.  Furthermore, it is a very fluid situation that can …

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Financial Terms That Have Fallen Out of Use

I find it interesting that certain financial and economic terms seem to have completely fallen out of use, especially in the press.  Among these I would include “Quality of Earnings” and “Fiduciary Responsibility.” As well, “Moral Hazard” is still used but surprisingly much less than one would think.  It seems to be on the way out. What is the …

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“First Time of Adversity” Effect

There was a recent article in The Wall Street Journal titled “Detroit’s Food Banks Strain to Serve Middle Class”: http://online.wsj.com/article/SB124718194179420129.html One aspect that caught my attention was the mention of people who are receiving aid for the first time.  In fact, the story points out that some people who used to be donors to the …

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Various Characteristics of Today’s Economy

I would like to mention an article in today’s Wall Street Journal, titled “The Economy Is Even Worse Than You Think.” http://online.wsj.com/article/SB124753066246235811.html I found the article does a good job of highlighting certain characteristics of this period of economic weakness. These characteristics reinforce a theme mentioned previously on this blog, that we are in a “new (economic) environment.” …

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Warren Buffett’s July 9 Interviews

I Warren Buffett’s July 9th interview on CNBC http://www.cnbc.com/id/31836625/  to be interesting, especially when he says: “And it’s very important the economy gets, comes back.  It will come back.  Government has less influence on how fast that happens than a lot of people would like to hope that it would.  But government is a player, …

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Article of Note on the Foreclosure Crisis

I found the following article to be of interest.  It is titled “New Evidence on the Foreclosure Crisis” and is found in The Wall Street Journal, p A13, July 3-5, at this link: http://online.wsj.com/article/SB124657539489189043.html While I can’t verify his analysis, the article is worth reading. I don’t agree with all of his conclusions, especially his remark that …

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Driving Around The Chicago Area…

Two things that seem especially noticeable when driving around the Chicago metro area are the amount of retail vacancies, and the poor physical conditions of the roads.  Both are very visible testaments to this period of economic hardship. Of course, it varies by location, but to generalize there is a lot of vacant retail space.  It …

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