The War on Gold II

Further to my post of 6 May on the book Sutton, A.C., The war on gold, 1977, ‘76 Press, California, USA, below are some extracts from the book I’ve made for my personal reference:

Page 59: It is this disciplinary function of gold that is irksome to politicians and managed-economy bureaucrats and academicians. Politicians . . . → Read More: The War on Gold II

Commercial Real Estate: Recovery Signs?

Some commercial real estate business is stirring again.

The deals seem to be starting small, but never-the-less they are happening.

“Until a couple of transactions settled, you didn’t have a floor in the market,” says Jeff Pacy, a broker with Preston Partners in Lutherville, MD.

According to Pacy and other commercial real estate insiders . . . → Read More: Commercial Real Estate: Recovery Signs?

Kansas City Fed: Regional Factory Production Now Net Positive

For the first time in 10 months the Tenth Federal Reserve District is reporting factory production that is now net positive. The Tenth Federal Reserve District encompasses Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico, and western Missouri.

The Kansas City Fed released its manufacturing report on Thursday and claimed that “manufacturing activity showed . . . → Read More: Kansas City Fed: Regional Factory Production Now Net Positive

Hedging using derivatives

There is a fascinating article in The Economist about how the world of derivatives has shaped up through the crisis.

I often encounter misconceptions about hedging. The one line that summarises the issue is this: The job of a hedging strategy is to combat extraneous economic exposure. Let me focus on currency exposure as . . . → Read More: Hedging using derivatives

What Has Government Done To Our Money?

On 25 June 2009 I was invited to the Cafe Libertalia to speak at a book club where I was given the latitude to choose the book for discussion.  I picked What Has Government Done To Our Money And The Case For A 100% Gold Dollar by Murray Rothbard. This book is an easy . . . → Read More: What Has Government Done To Our Money?

Employment in Manufacturing and Government and the Deficit with China

I heard a couple of talkers on business news and talk radio note that government employment had exceeded manufacturing employment in the United States. When I looked into it, I found the origin of this meme at a blogpost of Fabius Maximus entitled America passes a milestone!, with interesting charts and analysis. The charts . . . → Read More: Employment in Manufacturing and Government and the Deficit with China

Federal Reserve Eases On Interventions

On Thursday the Fed announced that it will end or significantly curb the use of three emergency programs that it had been using to provide cash to brokers and money-market funds.

The developments are additional signs that the Fed sees improving financial markets and that it will begin honoring its promise to back out . . . → Read More: Federal Reserve Eases On Interventions

Recession: Keynesian or Hayekian

In the Times of India I hear is all about “infotainment”, with more information less entertainment in economic times. So as far ET columnists go hardly can one hold them the standards of an academic debate, loose ends are quite natural. But what about sheer inconsistency, or gross error?

Swami ET article today is . . . → Read More: Recession: Keynesian or Hayekian

Existing Home Sales Yields Good News Triplet

Tuesday we reviewed a dozen areas where home prices are rising. Wednesday yielded the release of home sales data with three more significant pieces of great news.

1. Sales of previously owned homes rose for the second month in a row in May. The improvement was 2.4% better than the sales rate in April.

. . . → Read More: Existing Home Sales Yields Good News Triplet

Wages in Banking

Early in the financial crisis, Raghuram Rajan put compensation issues into the centre of thinking about what has gone wrong. In recent weeks, in India, this dimension has come to life. P. Vaidyanathan Iyer had a story in Indian Express saying that RBI had blocked the compensation packages of the CEOs of three private . . . → Read More: Wages in Banking