Part one of a two-part series. It took nearly a decade for the Federal Reserve Board to reach its inflation target of 2%. Now that the target has been not…
Back to ZIRP?
During the Obama Administration, the Federal Reserve Board held interest rates close to zero for seven years. The economy stagnated. But now, with the benchmark federal funds rate at 2.25%…
The Great Recession Still Having An Impact
Perhaps the most lasting impression of the Great Recession is that it made $1 trillion seem small. It seemed like a financial apocalypse, as the U.S. stock market lost half…
There Is No Normal
The Federal Reserve Board routinely gets it wrong. Given the political nature of its work, the differing opinions of its seven governors and, especially, the subjective economic beliefs that influence…
Addressing a Debt Crisis with More Debt
Last week, we discussed causes of the Great Recession. Today, we look at how it was addressed. The financial crisis was essentially a debt crisis. Mortgagees were unable to pay…
Fed’s Bond Buying Not the Success Some Claim
“When money gets tight, greed turns to fear … “ …
Affordable Housing Is An Oxymoron
If you own your home, congratulations. Your children may not be so fortunate. With the unemployment rate below 4%, wages have been increasing, but at a slower rate than expected…
Welcome to Wonderland
Contrariwise, if it was so, it might be; and if it were so, it would be; but as it isn’t, it ain’t. That’s logic. …
Theater of the Absurd
Vladimir: “Well? What do we do?” Estragon: “Don’t let’s do anything. It’s safer.” From “Waiting for Godot” In Waiting for Godot, two men spend more than an hour talking nonsense…
Don’t Bet On It
“ … human beings have a natural tendency to manage risk after the fact.” Michael…