> Bloomberg’s Chart of the Day shows the growth in federal payouts to state and local governments, also known as grants-in-aid, in the past half century: They have increased almost three times as fast as overall spending during the period, according to data compiled by the Commerce Department. Funds were provided at a $525 billion…Read More
There are two OpEds in today’s New York Times regarding the GSEs. One of them is full of insight and intelligence and rationality. The other is by John Carney. The insightful column, Say Goodbye to Fannie and Freddie, was written by former St. Louis Fed president Bill Poole. During the credit bubble and housing boom,…Read More
Initial Jobless Claims totaled a disappointing 484k, 19k higher than expected and up from 482k last week. To smooth out the seasonal adjustment problems in July this year because some auto plants shut down and others didn’t, the 4 week average moved to 474k, the highest since Feb. Continuing Claims, up to 26 weeks, fell…Read More
Following the July 21st comment from Bernanke that “the economic outlook remains unusually uncertain,” John Chambers of CSCO followed up last night with “we are seeing a large number of mixed signals in both the market and from our customers’ expectations, and we think the words ‘unusual uncertainty’ are an accurate description of what is…Read More
A few weeks ago, I mentioned we were 50% long, 50% cash (up from 100% cash in May), and were planning on selling into any rallies. Since then, we have sold some winners outright (PWER), cut back other positions, and been stopped out completely of losers; win some, lose some. We are now approximately ~85%…Read More
Here is last night’s CNBC appearance:
Starting at the 4 minute mark
Airtime: Wed. Aug. 11 2010 | 7:05:0 10 ET
Discussing Cisco’s shares slumping after hours and the market sell-off, with Arthur Hogan, Jefferies; Barry Ritholtz, Fusion IQ; Jim Lacamp, Macroportfolio Advisors and CNBC’s Herb Greenberg.
> Back on the Kudlow Report at 7:00 pm this evening to discuss the Fed, today’s big market drop, and maybe even some housing. Here is food for thought regarding the Fed action, via (former) Dallas Fed Prez Bob McTeer: The FOMC’s decision to limit the shrinkage of its balance sheet is modest indeed since…Read More
The professor of economics on America’s banking reforms, the risk of deflation in advanced economies and China’s growth
I love this paragraph from Bloomberg‘s Caroline Baum: “What we had was a government-prescribed course of amphetamines (to keep it up), antibiotics (to prevent infection) and antidepressants (to make it feel better). It endured regular steroid injections from both monetary and fiscal authorities. And it still has no real muscle.” Awesome . . .