Christina Romer’s October 22, 2009 Testimony

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Here is testimony by Christina Romer before the Joint Economic Committee on October 22, 2009: http://jec.senate.gov/index.cfm?FuseAction=Hearings.HearingsCalendar&ContentRecord_id=6dd4483c-5056-8059-7664-1856ea0ee4e6 Readers of this blog will know that I don’t agree with many of the statements and forecasts found in this testimony.  However, I am calling attention to it because it has several notable passages, as well as forecasts. Although we have heard …

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Warren Buffett – Recent Interview

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Here are a couple of links to a recent Warren Buffett interview.  I have not been able to pinpoint a date, but apparently the interview was from a month or so ago: The video link: http://pymnts.com/warren-buffett-on-what-s-next-in-the-payments-industry-2 The transcript link: http://pymnts.com/transcript-warren-buffett-on-what-s-next-in-the-payments-industry/ The first part of the interview deals with his views on the economy.   Although I …

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3Q Double-Digit Percentage Revenue Declines

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As I have discussed previously, double-digit percentage declines in corporate revenues is a serious issue. Many well-respected, broadly-based companies have posted double-digit percentage revenue declines for 3Q.  This is highly significant in that we are purportedly in an economic recovery; as well, 3Q 2008 should provide a (relatively) easy comparable period as the economy was struggling.   SPX at 1078.7 as this …

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Moral Hazard Speech

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Here is a link to an October 20 speech given by Mervyn King.  The speech speaks of the concept of Moral Hazard: http://www.bankofengland.co.uk/publications/speeches/2009/speech406.pdf Although there are various notable passages, I found this line perhaps most interesting:    “The massive support extended to the banking sector around the world, while necessary to avert economic disaster, has created possibly the …

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The “Crowded Trade” Concept

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Here is a story from Friday on CNBC.com that caught my interest: http://www.cnbc.com/id/33339374 It is titled “Stocks, Gold Are Crowded Trades: Hugh Hendry” I found it interesting for two main reasons.  First, it discusses the concept of the “Crowded Trade.”  This is a phrase that isn’t often heard these days.  Nonetheless, I think the concept is …

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Tax Increases And Our Economic Situation

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Lately there has been quite a bit of activity in either increasing or proposing increasing taxes (also increases in fees, fines, etc).  This activity is occurring at all levels, i.e. local, state, and national. These tax increases are very noteworthy given our current period of economic weakness.  I will be addressing various aspects of this in the future. For …

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Unemployment And Stimulus

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Here is a Wall Street Journal editorial from Monday: http://online.wsj.com/article/SB10001424052748703298004574459341050610398.html I found it interesting for two reasons.  First, it has a chart that shows the actual Unemployment Rate vs. that forecast in “The Job Impact of the American Recovery and Reinvestment Plan.”  Currently the Unemployment Rate is approximately 2% above the rate forecasted with the stimulus. Second, the editorial …

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A Quizzical Quote From Barney Frank

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Here is a story from The New York Times of October 8 that discusses the situation at the FHA: http://www.nytimes.com/2009/10/09/business/09fha.html?pagewanted=1&_r=2 What I found particularly interesting in this story was a quote from Barney Frank, the chairman of the House Financial Services Committee: “I don’t think it’s a bad thing that the bad loans occurred,” he …

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NABE Economic Forecast Survey

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Here is another economic forecast survey, this time from NABE: http://www.cnbc.com/id/33278490/ From the article: “The survey of 44 professional forecasters released by the National Association of Business Economists (NABE) found that 80 percent of the respondents believed the economy was growing again after four straight quarters of declines.” The survey’s results for 2010 GDP and …

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The Latest WSJ Forecasting Survey

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I would like to highlight a couple of facets of the latest Wall Street Journal Forecasting Survey: http://online.wsj.com/article/SB125494927938671631.html?mod=djemalertNEWS As stated, “The Wall Street Journal surveys a group of 52 economists throughout the year. Broad surveys on more than 10 major economic indicators are conducted every month. Once a year, economists are ranked on how well …

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