The 2017 Stress Tests: Are US Banks Really in Good Shape?
by“… equally efficacious, and equally a hoax.” – Benjamin Disraeli, 1848[1] One of the highlights of the U.S. summer for Fed watchers is the annual ritual…
Economics
Ten Years On: Recession, Recovery and the Regulatory State
byWhat we now know to have been one of the worst economic and financial crises of the post-World War II period began about ten…
The fiscal benefits of free trade
byWestern governments have an overriding problem, and that is they have reached or exceeded the bounds of taxation, at a time when legally mandated…
Central Banks Are Hiding the True Price of Risk
byIf you invest your money, you will have to deal with numerous risks. For instance, if you buy a bond, you run the risk…
Assessing the long-term structural risk for China
byAfter falling to 6.4% in Q1 2009 the yearly growth rate of China’s real GDP climbed to 12.2% by Q1 2010. Afterwards the yearly…
Lord Liverpool and the Return to Gold
byMartin Hutchinson and Kevin Dowd* * Hutchinson (karlmagnus.aol.com) is the author of the Bear’s Lear column, http://www.tbwns.com/category/the-bears-lair/. Dowd (kevin.dowd@durham.ac.uk) is professor of finance and…
The Bank of England’s incredible stress tests
byThe Bank of England’s 2016 stress tests are literally incredible. Of the seven big financial institutions covered in the exercise, only one (RBS) failed…
Why reduction in unemployment not the key for economic growth
byThe US unemployment rate stood at 4.3% in July against 4.4% in the month before. The number of unemployed stood at 6.981 million –…
Follow the money
bySince 2009, equities and other financial assets have climbed a wall of worry. Initially, it was recovery from the threat of a complete financial…
Saving and money – what is the relationship?
byConventional wisdom says that savings is the amount of money left after monetary income was used for consumer outlays, implying that saving is synonymous…