Browse by Tags

Thoughts From The Frontline

Blog Subscription Form

  • Email Notifications
    Go

Syndication

Archives

  • The Bang! Moment is Here

    "Perhaps more than anything else, failure to recognize the precariousness and fickleness of confidence– especially in cases in which large short-term debts need to be rolled over continuously – is the key factor that gives rise to the this-time-is-different syndrome. Highly indebted governments, banks, or corporations can seem to be merrily rolling along for an extended period, when bang– confidence collapses, lenders disappear, and a crisis hits.

    ...
    Filed under: , ,
  • Dr. Frankenstein’s Europe

    "Had I right, for my own benefit, to inflict this curse upon everlasting generations? I had before been moved by the sophisms of the being I had created; I had been struck senseless by his fiendish threats; but now, for the first time, the wickedness of my promise burst upon me; I shuddered to think that future ages might curse me as their pest, whose selfishness had not hesitated to buy its own peace at the price, perhaps, of the existence of the whole human race."

    ...
    Filed under: , ,
  • Twist and Shout?

    Bailing Out Europe’s Banks
    WWGD?
    What Is the Fed Really Risking?
    What Will the Fed Do Next Week?
    Twist and Shout?
    Europe, Houston, NYC, and South Africa

    ...
  • Europe on the Brink

    We have avoided Armageddon, at least for now. The cost to the US taxpayer has been a few trillion. Some in the media are loudly announcing the end of the recession. But we are not out of the woods yet. There are a few more bumps in the road. Actually, some of them are quite steep hills. As big as the subprime problem? Maybe.

    When asked a few weeks ago what was my biggest short-term concern, I quickly replied, 'European banks have the potential to create significant risk for the entire worldwide system.' This week we will glance "over the pond" to see what gives me cause for concern. Then we briefly look at a few of the bumps I mentioned, which are likely to stretch out any recovery, and maybe even dip us back into recession.

    ...