Larry's Blog
Another Deal Older and Deeper in Debt
August 2, 2011
The U.S. political deal to raise the debt ceiling and avert default has gone over like the proverbial lead balloon. Financial markets gave it two thumbs down, and so did much of the press. The Byzantine U.S. tax code was not addressed. Unsustainable trajectories in domestic entitlement programs were not fixed. Military spending may be […] More
Central Bank Watch
Australian Monetary Policy Left Unchanged
August 2, 2011
Following seven increases of Australia’s Official Cash Rate between October 2009 and November 2010, the OCR has been steady at 4.75%. A statement today asserted that those moves were “appropriate” and that financial conditions in Australia are now “tighter than normal,” as attested by subdued credit growth, softer asset prices and an high exchange rate. […] More
New Overnight Developments Abroad - Daily Update
Lasting Damage from the U.S. Debt Debacle
August 2, 2011
The U.S. House of Representatives approved the deficit ceiling increase Monday. The Senate is expected to do so this afternoon in time for President Obama to sign the bill before today’s deadline. But all is not clearly well. Risk aversion is manifest in the marketplace today. Many consider the compromise a poor bill, and the […] More
