The dominos are falling. It’s the modern version of a 1930’s bank run. Since everything is bigger (the leverage) and faster (the computers) these days, so is the downfall in financial prices and institutions. The lead domino is an asset … Continue reading
Invitation: Unchartered Waters Ahead: I will be giving a McCombs Alumni Lecture/Discussion (open to the public) Wednesday, Sept. 14, starting at 7:30 p.m. at the AT&T Conference Center just off campus. The content will be the likelihood and effects of … Continue reading
Last month, I made a personal odyssey to the Grand Tetons Mountains and Jackson Hole, Wyoming. It’s the place where I discovered the American West while in college. It is a mountain rising abruptly from its flat surroundings (the Hole) … Continue reading
A member of the Euro zone has defaulted while pressure is building on others and a U.S. government default is in suspended animation. Since a U.S. default would be a willful strategic act it can be avoided, but even if … Continue reading
The Euro debt situation continues to deteriorate and the U.S. is not far behind. All the distress that is now focused on government debt comes from excessive private indebtedness as developed world countries seek to support the private sector. This … Continue reading
Interview with Dr. Lacy Hunt on the pervasive effects of accumulated debt on the economy and financial market pricing.
We had some more fancy footwork and relieved smiles from Angela Merkel and Nicolas Sarkozy this past week. The reason for the smiles is not that the Euro debt crisis has been resolved, but they believe they have found a … Continue reading
The Maastricht Treaty of 1992, which created the Eurozone and the European Central Bank (ECB), requires fiscal responsibility of its members. Annual fiscal deficits relative to GDP were not to exceed 3 percent, and cumulative debt was supposed to be … Continue reading
At the Fed’s humble beginning almost a century ago, its designated role was to dispatch a cash-bearing armored car to a member commercial bank whose depositors had lost confidence and were in line at the door to exchange their deposits … Continue reading
The extent and implication of the U. S. debt overload. Neither monetary nor fiscal policy can solve the debt problem nor the profound side effects of excess debt. Download .pdf Welling at Weeden Interview
