There is an ongoing debate on the current nature of the economic environment and what should the response be by government. Today's Outside the Box by Paul McCulley takes up one view, arguing that we need a federal response and stimulus package to protect the overall economy and save capitalism from...
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John Mauldin's Outside the Box
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John Mauldin
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01-06-2009
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Filed under: The Fed, Deflation, Politics, Ben Bernadke, Paul McCulley, Government, Pimco, Bailout, TARP, Economic Crisis, Welfare, Socialism, Minsky
This week we look at a short but excellent summary of the state of the current economic crisis. I always enjoy reading David Rosenberg, the North American economist of Merrill Lynch. He has a no-nonsense style that is refreshing from most mainstream economists. The reality is that things continue to...
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John Mauldin's Outside the Box
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John Mauldin
on
12-01-2008
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Filed under: Housing, The Fed, GDP, Ben Bernadke, Consumer Spending, Recession, Consumer Confidence, Merrill Lynch, Barack Obama, Capex, FOMC, David Rosenberg
Do government bailouts in times of banking crises work? Philippa Dunne & Doug Henwood of The Liscio Report highlight a major study of 42 fairly recent banking crises around the world. Result? Some types of government intervention works and some don't. One characteristic that is needed though...
The purpose of Outside the Box is to present views which cause us to think through our basic assumptions. This week our old friend Michael Lewitt of Hegemony Capital Management gives us a view as to why the bailout bill going down may not be as bad as I think it might. There is much we agree on, however...
What a momentous weekend. I was pounding the table about the need to move quickly on Fannie and Freddie in my last few letters, and especially this last letter. And then they did it. There are a lot of details that have yet to come out, and it is likely to be far more expensive the Savings and Loan crisis...
I have often commented about the problem of personal savings. We worry about the lack of savings here in the US, but many do not understand that if everyone started to save 5% of there income immediately that it would seriously impact consumer spending, pushing the US into a recession. It is a paradox...
This week we do something a little different in our Outside the Box. Every weekend I get a very information-filled blog called Investment Postcards from Cape Town ( http://www.investmentpostcards.com ) by Dr. Prieur du Plessis. In it he highlights what he thinks is the most important portion of the writings...
The subprime problem, we were told, would not spread to other markets. It would be "contained." And it has, according to Jim Grant. He quipped last week that it has been contained on planet Earth. The risks coming from rising defaults in the US (now above 600,000 and rising from just 200,000...
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John Mauldin's Outside the Box
by
John Mauldin
on
11-26-2007
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Filed under: Credit Crisis, Housing Crisis, Credit Markets, Subprime, Ben Bernadke, Recession, Interest Rates, Consumer Debt, Counterparty Risk, Jim Grant, Credit Default Swap
Introduction Every month I read the outstanding commentary by Bill Gross, Paul McCulley and others at PIMCO. This month they have comments by Chris P. Dialynas, Managing Director, Portfolio Manager and Senior Member of PIMCO's Investment Strategy Group. Dialynas offers his views on the flat yield...