Has Fiscal Policy Been Tried?

Jeffrey Sachs in yesterday’s FT A-List argues that “spending has been sizeable…the structural fiscal expansion was more than 4 per cent of GDP on a sustained basis during 2009-11… Fiscal stimulus, in short, has been tried, but did not succeed in spurring a robust recovery.” But reading further into why this fiscal effort failed, he […]

For Every Seller There’s a Buyer

Whenever you see “money going into/out of XYZ”, your bullshit detector should go off — it usually indicates a lack of understanding of markets. Day-to-day, bonds and stocks and currencies TRADE. That is why many are on exchanges — the word is not an accident, as securities CHANGE owners. Now, foreigners can buy (be going […]

Tim Harford on UK Budget

In an opinion piece in yesterday’s FT, Tim Harford shows what his simple UK budget ideas of “short-term stimulus; long-term fiscal consolidation; and reform aiming at a sane system of taxation,” means in practice. Hear Hear!  But sadly, we remain a million miles away from such sensible ideas. Too much bureaucracy, lobbying, vested interest. For […]

US $707 Trillion

And growing fast. The Doomsday Machine is loaded and fully protecting the TBTF banks in the safe Nash Equilibrium of MAD and we’re finally back above pre-Lehman levels with a great year for dealers, 21.4% y/y growth! Someone’s getting some nice bonuses for Xmas. Source: http://www.bis.org/statistics/otcder/dt1920a.pdf (Updated last month, through June-2011). The current release doesn’t […]