Economics Highlights

Posted by admin on March 10th, 2009 filed in General

President Obama’s Implied Future For Derivatives « The Baseline Scenario

Big financial players now know they have a colossal potential put or bailout option. They can also construct interconnected structures that no one can understand, except possibly the Treasury. So every 10-20 years (or more often?) we will experience a crisis of current proportions?

Inappropriate Stimulation « ThinkMarkets

The fiscal stimulus program is designed to stimulate where economic activity has deteriorated and there are job losses. Many of these areas are those that had over-expanded. As we have been saying for some time on the blog, the effect of this kind of stimulation is to slow down the re-allocation of resources.It will not succeed, however, in preventing it. What it will do is prolong the recession