Tag Archives: Debt

The Sermon On The Mount[ain Of Debt]

“Blessed are the young, for they shall inherit the national debt.” – President Herbert Hoover The Hoover administration thought there was no room and was ideologically opposed to fiscal expansion to stimulate aggregate demand.  Furthermore, Keynesian theory was not even … Continue reading

Posted in Debt, Demographics, Uncategorized | Tagged , | 17 Comments

The “Dusenberry Effect” In The U.S. Economy

Just saw this chart on Zero Hedge yesterday, which takes me back to the days of graduate school and an unfinished Ph.D. dissertation. One part of the “Dusenberry Effect” basically states that consumers do not give up their consumption patterns … Continue reading

Posted in Economics, Uncategorized | Tagged , , | 8 Comments

How to Become a Trillionaire and Other Thoughts

Grab one of these: Careful what you wish for central bankers and fiscal policy makers.  Though we don’t see signs of “rollover risk” in any of the G5 or G20, it’s all about confidence and you know what Joe said about … Continue reading

Posted in Economics, Fiscal Policy, Uncategorized | Tagged , , , , | 1 Comment

Sovereign Debt Hygienics

Interesting calculations posted by Spiegel from the Kiel Institute on the sovereign haircuts which would make the debt of the listed countries sustainable.   We would love to see the calculations for the U.S., U.K., and Japan. (click here if charts … Continue reading

Posted in Black Swan Watch, Euro, Italian Yields, PIIGS, Sovereign Risk | Tagged , , , , , | 3 Comments

NY Times: Greek government’s $38,000 bills for office curtains

Today’s NY Times piece on the failure of Greece to cut its bureaucracy is a must read for anyone trying to understand one of the major forces driving global markets.   It also gives context to why Germany and other core … Continue reading

Posted in Black Swan Watch, Euro, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , , , | Leave a comment

Robert Prechter: “Junk bond prices are going to go to zero.”

His predictions, advice and timing have always been tough to act and trade on and, like all of us, is wrong a lot.  But here’s the latest to feed your inner macro bear.  Roarrrrr!! (click here if video is not … Continue reading

Posted in Black Swan Watch, Bonds, Sovereign Debt | Tagged , , , , | Leave a comment

Quote of the Day: Amen!

“Just consider what levels of debt we are passing on to future generations.  This isn’t responsible, politically, morally or ethically.” – Juergen Stark, ECB

Posted in Fiscal Policy, Quote of the Day, Sovereign Debt | Tagged , , | Leave a comment

Debt and Leverage in Advanced Economies

The following is one of the most comprehensive snapshots of relative debt and leverage in the major advanced economies.   The source of the table is the IMF’s Global Financial Stability Report (page 11). We find interesting that U.S. debt held … Continue reading

Posted in Bonds, Budget Deficit, Charts, Economics, Sovereign Debt, Sovereign Risk | Tagged , , , , , | 3 Comments