Previously I discussed some of the differences between inflationary and deflationary economic environments. I’d like to pick up where I left off, mention one challenging aspect of deflation, and talk a bit about which environment we’re experiencing. Read the full article ... Read the full ... Read more

Every time the IMF issues an estimate for the cost of the losses from toxic assets at the world’s financial institutions, the numbers get worse. According to the Times, “Toxic debts racked up by banks and insurers could spiral to $4 trillion (£2.7 trillion), new forecasts from ... Read more

Even though the stock market has been showing signs of stability over the past few weeks, the recession is ongoing and plenty of investors may remain paralyzed and shocked over the events of the past six months. Some maintain the attitude that stocks and even bonds are too volatile and sticking ... Read more

Roger Altman, former deputy Treasury secretary, writes in the Financial Times: Why this will not be a normal cyclical recovery (ht Jonathan) The rare nature of this recession precludes a cyclically normal US recovery. Instead, we are consigned to a slow, painful climb-out ... What is unusual is ... Read more

By John Tamny of RealClearMarkets When economic problems reveal themselves, a great deal of finger-pointing inevitably ensues. For quite some time now economists and commentators have sought to place blame for the housing crisis, and quite a lot of it has been heaped on former Federal Reserve Chairm ... Read more

Many were of the belief that the trade deficit would widen as the US recession strengthened. The only way that could have happened is if oil prices stayed stubbornly high. While the price of oil may have bottomed, odds of it shooting up towards $100 again in the near future are slim. However it's ... Read more

In one of the more ridiculous Keynesian theories to date, Gauti B. Eggertsson at the New York Fed comes to the conclusion Tax Cuts Will Deepen The Recession . Simple logic would dictate that letting people and businesses keep more of their money would be a good thing but amazingly Eggertsson comes ... Read more

Click on graph for updated image in new window. This graph is from Doug Short of dshort.com (financial planner): "Four Bad Bears". (if smaller graph isn't updated, click for larger graph) Note that the Great Depression crash is based on the DOW; the three others are for the S&P ... Read more

The DOL reports on weekly unemployment insurance claims : In the week ending Feb. 7, the advance figure for seasonally adjusted initial claims was 623,000, a decrease of 8,000 from the previous week's revised figure of 631,000. The 4-week moving average was 607,500, an increase of 24,000 from the ... Read more