A conversation with Bridgewater Associates’ Ray Dalio
Update: 18 Mar 2008. I am reposting this entry from Feb 10th because it is relevant to the need to liquidate insolvent institutions like AIG that are now getting bailouts.
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HBOS and RBS get a right bollocking
I watched the proceedings of the UK Treasury Committee with HBOS and RBS this morning on Bloomberg UK TV and it was a dismal sight. It had the feel of the Nuremburg trials, honestly. The clip below doesn't do justice to how tense the…
California closed for business
This video from the Wall Street Journal demonstrates what happens when governments go bankrupt.
Roubini: Even 2010 will feel like a recession
Nouriel Roubini, nicknamed Dr. Doom by the media for his accurate but downbeat calls on the economy, is not presenting a very upbeat scenario here. He says that even if everything goes well, growth in 2010 will be very poor. It will feel…
General Motors and Chrysler may be forced into Chapter 11
It seems that the Obama Administration is playing hardball with GM and Chrysler. They may force the companies into bankruptcy to protect American taxpayers from having to pony up yet more money for the beleaguered automakers.
I see this…
What is an economic depression?
Depression is a taboo word in the English language. Its mention conjures up images of bread lines, shanty towns an general misery from the 1930's. Yet, the D-word is making a comeback amidst the backdrop of a weak global economy. In fact, a…
IMF Head Strauss-Kahn uses the D-word Depression
You may have picked up on my change in terminology recently. I have gone from calling this rough patch in the global economy a rough patch, downturn, recession or some other euphemism to labeling it a Depression. Now, I am doing that for…
Is prophylactic protection needed for excessive stimulus?
Last week, Willem Buiter sized up the U.S. and the U.K. and found their desire to enact deficit-financed fiscal stimulus not credible. The attached video does a better job of summing up the mood Buiter invokes and the need for prophylactic…
Are central banks independent actors?
Just over a decade ago, the Bank of England was given full monetary independence from the British government, making it one of the last major central banks to achieve this status. The move was heralded as critical for maintaining…
Rio Tinto’s Leng quits after a month on the job
Jim Leng, the new Chairman of troubled mining giant Rio Tinto has quit abruptly despite having been employed by the company for only one month. This does not bode well as the company's mountainous debt is at the core of why Leng is leaving…