The chances of a Greek default in the next 5 years is 98%. It now costs $5.8 million upfront and $100,000/year to insure $10 million of Greek debt for 5 years. This is because the austerity plan is failing, the…
After spending so much to save the banks from collapse the government is now suing them for roughly $30 billion! That’s the amount lost by Fannie and Freddie and attributable to the big banks. Even if these suits have merit,…
Hurricane Irene has done immense damage to parts of the east coast. Clean up is estimated at upwards of $30 billion. Yet, this impact will be negligible on future GDP. This is because our economy is very large, about $15…
The Friday File: The UN has decided to limit the reports it publishes to a maximum of 10,700 words. They are doing it to save $ and reduce burden on translation services. This will also save a lot of diplomat’s…
The Institute of Supply Management’s August manufacturing report was very weak with a reading of 50.4 barely above the 50 level, indicating expansion. And, its steadily decline from a high of 61.4 in Feb is troubling. But, don’t fret. Other…
The DOJ’s decision to block AT&T’s takeover of T-Mobile is good policy because the loss of T-Mobile would have probably raised prices and reduced handset offerings. But, the win will be phyrric if T-Mobile cannot sell itself soon as it’s…
The Federal Reserve still has options, short of QE3, if it wants to encourage more lending. First, it can reduce to zero the rate of interest it pays banks on deposits held at the Fed. Second, it could sell short…
The Friday File: Though the US no longer makes high-tech stuff like ipads and cell phones, or low tech stuff like shoes, we are a paper clip powerhouse. Most of the 11 billion sold, made in the US. Why? Since…
NHTSA recently concluded that equipping large school buses (those weighing more than 10,000 lbs) with seat belts is unnecessary. NHTSA claims large busses are among the safest modes of transit and that when children are killed, seat belts would not…
Despite a perpetually lousy economy, the Yen continues to rise; Three reasons. First, deflation makes the Yen worth more tomorrow than today encouraging investors to hold it despite microscopic interest rates. Second, Japan’s large trade surplus ensures continued demand for…