Where are the consumers?

If the consumer credit party is over, is it possible for businesses to grow, and prosper? Not now, when consumers stop consuming, the economy stop growing.If consumers don't borrow, the consumer economy won't...

Roubini's Bad News Explained

Roy C. sent me the following message: “Roubini's bad news. Could you translate some of the harder stuff into something comprehensible?”Lets try to make it better understandable:The United States is up to its...

Economies Will Change:

Rebalancing the world’s economies won't happen overnight, that will take far more time.A Headline in The New York Times says: "Americans stop buying; trade deficit declines" "For the first eight months of the...

Is Active Monetary Intervention Necessary?

Friedman's "solution for reducing the prospect for active intervention as well as the margin of human error was to propose the establishment of monetary rules instead of monetary authorities," explains Vox Day the...

Jobless Recovery

The earnings announcement of another multi billion profit last week Wednesday by Wells Fargo Bank lifted their stock for while, however it fell back 7% for the day, after it became clear that the books were...

Deflation Sources

The problem is debt. Too much debt in the private sector set off bear markets and a bank crisis. Too much debt in the public sector will cause big problems too - a default, and finally hyperinflation, which is...

'Too Big to Fail' even Bigger now

Companies paying bosses vast bonuses while getting state assistance offended peoples' values, says President Obama. Timmy Geithner the Treasurer says, seven companies must slash the basic salaries of their 25...

Free Market Forces Will Create the Needed Jobs

Larry Summers (Director of the White House Economic Counsel) made his reputation as an employment theorist, he says: “I thought if you could have areas where there was long-term substantial unemployment, then...

Too Big to Fail

There is an old saying that if you owe the bank $1,000 that’s your problem, but if you owe the bank $1 million that’s their problem. Similarly it worked for the Wall Street giants. A year after the crash,...

Job Creation only achievable by Small Business

To be more precise on this subject: Large government deficits choke off the very investment that is needed to create jobs. Intervention by the government in doing well to many people, consequently -maybe...

Business investment is falling

"Still on the job, at half the pay," is a headline in The New York Times. It tells the story of an airline pilot whose position has been downgraded and whose pay has been cut in half. The fellow is now earning...

The Status of the U.S. Economy

Once upon a time earnings were a reliable performance measure to judge a company’s financial health, whether being good or poor. It helped to make proper business decisions.If the company was making money, it was...

A Wise Lesson From the Past

For 40,000 years - maybe longer - our ancestors have walked the very earth. They lived. They died. What did they know? Scientists say they were as smart as we are. What did they talk about? What did they think...

Small Business the Rescuer of the Economy

Watch out, the greenback is going be grilled, here’s what Nouriel Roubini recently wrote in The New York Times:      “We may now be entering the Asian century, dominated by a rising...

Economic Cycle has Turned

During the great credit expansion of 1945-2007, businesses could anticipate, generally, rising earnings. People were buying more and more things on credit. In a national economy, businesses pay wages and then the...