US Must See Other Countries Have Laws Too

The US Securities and Exchange Commission recently moved to sue the Chinese affiliates of the big four accounting firms for not sharing details of their audits of Chinese companies. From the US perspective this was a reasonable response to the perceived opacity of Chinese companies listed on US exchanges. Allegations of fraud at companies such as Sino-Forest have led […]

U.S.-China: Headed for Trade War?

A trade bill approved by big margins in Congress and about to be signed by Obama will allow existing tariffs on imported goods from China to stay in place after they were threatened by a court ruling. At a time when there seems to be little bipartisan support for anything, it is surprising that this […]

Imagining a World Without Banks

PIMCO’s Bill Gross has remarked that our nation became a superpower because “we were getting richer by making things, not paper.” Unfortunately, for the last few decades, our nation has primarily grown weaker by making worthless paper in a variety of ways — junk bonds, subprime mortgages and countless types of derivatives — through banks. If […]

Economics for a New Century

From The Huffington Post: With personal and national debt reaching record levels and unemployment at its most severe since the Great Depression, now may be the opportunity to abandon growth economics and come up with economic models for shrinking economies. Why not consider doing more with less and returning more to the environment than taking […]

Investors Should Control Financial Regulation

From the Financial Times: One of the biggest lessons of the financial crisis is that investment bankers cannot be trusted. Self-regulation and “principles-based” regulation clearly failed in theory and in practice. These bankers have also gained too much influence in the governments and entities that are supposed to be regulating them. Asking Hank Paulson, Timothy […]

The Banking System Is Still Broken

From the Wall Street Journal: Borrow from the Federal Reserve at zero and lend to Treasury for a profit.  That’s some racket. Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben Bernanke have announced that the recession is over. Now that the Dow Jones Industrial Average has broken the 10,000 mark, we’ll surely be hearing […]

Goldman Sachs vs. Chinese Banks

From Institutional Investor: Financial analysts who claim that China’s big banks will soon catch up with their Western counterparts in the league tables demonstrate a lack of understanding about what it takes to be a world-class player in this industry. Goldman, Sachs & Co. became a powerhouse by developing its culture, talent pool and infrastructure […]

Credit Crisis Part Deux

From Institutional Investor: June 22, 2009 – Ben Bernanke has announced green shoots, and Tim Geithner has completed the bank stress tests. Unfortunately, all this good news amounts to little more than a public relations stunt pulled by the government, and it remains to be seen how long they can continue to fool the public. If one […]

U.S. Banks Will Only Get Stronger

Once the major American banks survive this period of stagnation intact, they can and will rule the world once again. The conventional wisdom these days is that American banks, on government life support, are destined to lose their dominant place in the global financial universe. Nothing could be further from the truth. In fact, many […]