An update on the economy Part I
Daniel Alpert is a managing director of Westwood Captial and Thomas F Steyer is Co-Managing Partner of Farallon Capital Management
Part II
Monday, March 23, 2009
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
Page after page of professional economic journals are filled with mathematical formulas leading the reader from sets of more or less plausible but entirely arbitrary assumptions to precisely stated but irrelevant theoretical conclusions. —Wassily Leontief, Science, Volume 217, 9 July 1982, p. 106.
Poor sovereign government finances are not just the province of Europe. Fitch this morning downgraded the credit rating of Japan to A+, one notch below both S&P and Moody's. Fitch stated the obvious extraordinary amount of debt they have relative to GDP but said "the country's fiscal consolidation plan looks leisurely relative even to other fiscally challenged high income countries." As in some European countries, there will never be enough growth in Japan to sustain their debt so policy makers have only two choices, debt restructuring/writedown or print money and unfortunately printing money will be the politically easier decision. The...
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March 25th, 2009 at 8:26 pm
Barry:
Thank you again. The more this problem gets run through my cognitive grinder the more sense it eventually makes.
March 26th, 2009 at 6:04 am
http://www.bloomberg.com/apps/news?pid=20601087&sid=aHkQoiELmnpc&refer=worldwide
Brown ‘Terribly Fragile’ After Bond Auction Flops
“Brown’s strategy now looks terribly fragile,” said Mark Wickham-Jones, a professor of politics at Bristol University. “His situation is economically extremely uncertain, politically risky and this auction again highlights how we are now in un- chartered territory.”
The Treasury yesterday tried to sell 1.75 billion pounds ($2.6 billion) of 40-year gilts and got 1.63 billion pounds of bids, a sign that investors are reluctant to finance his record borrowing.
…..hmmmmm…….Coming soon to a theatre near you?…..