On The Economic Populist you might have noticed the middle column. We try to list other sites and blogs who have exceptional insight and writing on what is happening in the U.S. economy.
Sometimes though, one cannot say it better but miss those who did.
Must Read Post #1
Econbrowser digs deep into the headline buzz generated when the Federal Reserve turned a $46 billion dollar profit. how the Federal Reserve Turned a Profit gives a fairly in depth analysis, says the Fed's strategy is an alternative to quantitative easing and has some additional warnings in the conclusion.
I can't find out much more information than this blurb from the Financial times:
Several leading international banks have received subpoenas from US regulators investigating one of the complex securities markets at the heart of the financial crisis, people familiar with the probe say.
The Securities and Exchange Commission sent subpoenas last month to banks including Goldman Sachs, Credit Suisse, Citigroup, Bank of America/Merrill Lynch, Deutsche Bank, UBS, Morgan Stanley and Barclays Capital, these people said. Requests for information were also made by the Financial Industry Regulatory Authority, which oversees broker-dealers.
There is a concept in economics known as the "snow-ball effect" on debt. It involves the self-reinforcing effect of debt accumulation arising when the growth of the national economy is less than the interest paid on public debt.
In math it looks like this:
The Consumer Price Index is out for December 2009 with an increase of 0.1% from last month and for the year, we have an overall increase of 2.7%.
This month it's used cars which have the price rise of 2.5%. Not surprising since cash for clunkers has now worn off. Travel increased too, airfare alone went up 2.4% in a month. Guess all of those naked screeners are spendy (a joke, it is assuredly fuel costs).
But recall how some food commodities are expected to go sky high in 2010, this report may be showing the first signs, with food increasing 0.2%. This month's 0.2% is the largest increase in a year. Energy also rose another 0.2% but this is the smallest increase in 5 months.
The Commodity Futures Trading Commission is proposing a new rule to limit energy speculation.
(everyone applaud)
The proposed caps announced on Thursday will have limited market impact affecting only a small handful of traders – about 10, by the CFTC’s own estimates – on crude oil, natural gas, gasoline and heating oil markets. The new limits are largely higher than the so-called “accountability levels” set by exchanges and which, if exceeded, trigger heightened surveillance.
During the previous year of 2009 many of us found ourselves baffled by the media barrage of accolades on behalf of Timothy Geithner, Larry Summers and Ben Bernanke. Extolled as the economic saviors to the masses, a sizable number of people would instead consider them among the architects of the economic meltdown and ongoing destruction of the middle and working classes.
A survey of the more thoughtful, brilliant and constructive economic thinkers is in order. The following women have made significant contributions during 2009, and throughout their lives, to inform and enlighten us on important aspects of the national and global economy.
Sales were up 2.0% from October 2009 and Inventories were up 0.4% from October 2009.
For the year to year comparison, sales are still down 0.4% from November 2008 and inventories were down 11.1% from November 2008. Remember in November 2008 the official recession has gone on for 11 months.
Sales to inventory ratios is now 1.28 for the month. This is actually good, yet don't get your panties all in a bunch until you read the below on wholesale data, released earlier in the week.
The more the inventory/sales ratio returns to pre-recession levels the more it is implied hiring will begin to manufacture new goods. Of course that also requires demand return to pre-recession levels.
President Obama announced a new 'fee' or tax on possibly 50 of the largest financial conglomerates. Are they finally getting it? We will see. I admit I was very skeptical of this notion when the White House first floated this idea a few days ago. After all they have a good track record with protecting the financial oligarchy. Was this more of the same? Possible not. The administration is calling this tax a fee: “financial crisis responsibility fee”. Boy, that name is dripping with spin. Name aside, on paper this tax may actually work. Here are some of the details from Treasury Department Fact Sheet:
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