The Winter of our Discontent: Obama’s Tenuous Victory

An early winter has descended on the northeast, ushered in by a 100 year storm that has left the coastal portions of much of the mid-atlantic and northeastern states reeling.  Our quadrennial demonstration of the degree to which the entire country is divided and politically irreconcilable was once again upon us last night. Moving into […]

Let’s Burst this “Banks Won’t Lend” Policy Trial Balloon Before it Leaves the Ground, Please

David Reilly writes in today’s Wall Street Journal Heard on the Street column about how policy makers are pressuring banks to lend more to consumers, and are even considering novel measures providing targeted liquidity to encourage them to do so.  Reilly notes the opposite view, not without some merit, that consumers don’t wish to borrow as they “still […]

Another Summer of Discontent: The Four Factors that Explain Why What We’re Doing Isn’t Working

Here is what we know about the global economy given the experiences of the past four years: There is a global insufficiency of demand relative to an immense oversupply of labor and productive capacity. The imbalances between high-wage/current-account-deficit/balance-sheet-indebted nations and lower-wage, surplus nations have produced a glut of savings in the latter, relative to the opportunities […]

Earth to Paul Krugman

This past Sunday, Paul Krugman penned a screed in the New York Times Magazine (entitled, somewhat unflatteringly in my opinion, “Earth to Ben Bernanke”) that expanded on the content of an ongoing debate in the economics blogosphere over the contents of the mind of Federal Reserve Board Chairman Ben Bernanke. Professor Krugman has posited for months […]

Alpert, Noreen, Luschini on Economy, Debt, Deficit

I come in at [4:18]   March 22 (Bloomberg) — Cliff Noreen, president of Babson Capital Management LLC, Dan Alpert, managing partner at Westwood Capital LLC, and Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC, talk about the U.S. economy and corporate profits, the credit market and student debt, and the political debate […]

Deconstructing the Federal Reserve’s 2012 Comprehensive Capital Analysis and Review: What Does the CCAR Really Tell Us About the Big 4 Commercial Banks?

The following was published by my firm, Westwood Capital, LLC, as a research report this morning and is subject to the disclaimers set forth below. A convenient copyable data table can also be found at the end of this post. It has been just over 36 hours since the release of the 2012 CCAR (the “stress […]