Zombie Banks, Zombie Economy, Zombie Politicians

Do you recognize anyone here? Say John Thain or Hank Paulson? I definitely see Tim Geithner there to the right. I keep hearing about the Zombie banks and Ben Bernanke at the Fed really hates the term. But the term is absolutely precious. A zombie is a reanimated human corpse. What better way to describeContinue reading “Zombie Banks, Zombie Economy, Zombie Politicians”

Some NewTrouble Spots

I normally start my morning reading newspapers and online magazines in Europe before the US markets open. The graph to the left shows in percentage to GDP of loans that the Austrian banking knuckleheads made to the developing countries of Eastern Europe. Note that this is as of September 2007. There are no dollar figuresContinue reading “Some NewTrouble Spots”

The Bushobama Depression

Well it’s official. It’s a Depression. Two days ago at a regional conference in Kuala Lumpur, IMF Managing Director Dominique Stauss–Kahn said that the big world economies are already in a depression. Of course this is coming from a guy with a hyphenated name like a Singing Nun who is also known in France asContinue reading “The Bushobama Depression”

Thoughts on Default

This is a hundred billion mark note from Germany circa 1923. With this bill you could buy 2 beers during the episode of German hyperinflation which ended in November 1923 when the government finally capitulated and issued the new and improved Rentenmark. You could exchange 10 of these bills to obtain one Rentenmark or 1Continue reading “Thoughts on Default”

Economists and the Corporate State

The ongoing debate about the stimulus package illustrates to this writer the utter futility of politicians invoking economists to support their arguments . Economists pack the upper echelons of government, academia and wall street and their assumptions drive policy like no other discipline. Economics has evolved over the years with one school of thought suchContinue reading “Economists and the Corporate State”