Reflections on Obama Press Conference
November 24, 2008
An effort was made to reassure the world that the incoming administration will begin work on crafting plans to restore growth today, but the reality is that 57 days remain before power is transferred. That’s a very long time for a crisis that moving so fast. The goal of creating 2.5 million new and/or saved […] More
Currency Markets in the News
More Evidence of an Intensifying Economic Downturn in Euroland
November 24, 2008
Late last week came news of a 3.9-point decline in Euroland’s November composite PMI to record low of 39.7 and an even worse reading of 36.2 in manufacturing versus 54.1 in November 2007. Word also surfaced that construction output sank 1.3% in September. Four more adverse statistics were reported from the common currency area today. […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Citigroup Gets $306 Billion Government Bailout
November 24, 2008
Stocks rallied in Europe and closed 2.7% higher in Japan in response to a rescue of Citigroup, sending a signal there will not be more Lehmans. The British Ftse (+4.0%), Paris Cac (+3.9%) and German Dax (+3.0%) are each sharply higher. Citigroup will issue $27 bn of preferred shares to the government, which in turn […] More
Larry's Blog
When Does a Recession Become a Depression?
November 24, 2008
Recessions and depressions are each parts of the business cycle when demand, production, and employment are contracting. Depressions are considerably more severe. Economists do not agree on objective quantifiable criteria for deciding when a recession is bad enough to constitute a depression. The United States has experienced 32 business cycle downturns since 1857. Six of […] More
Larry's Blog
The Geithner Appointment
November 24, 2008
News that President-Elect Obama will reportedly appoint Tim Geithner, New York Fed President, to be Treasury Secretary has received very favorable reviews for the most part. Geithner has good relationships with Obama, Henry Paulson, Ben Bernanke, Henry Kissenger, Robert Rubin, and Larry Summers. His specialty is crisis management. Geithner represents continuity and will not need […] More
