Supply and Demand (in that order)

"[most businesses have] been able to obtain all or most of the credit they need. What they don't have are customers." Read mor...

Copyright, The New York Times Company The financial panics of last September and October will always be part of the story of this recession,...

I look at the NY Fed's Economic Data Release calendar almost every day. Now I hear that they have developed an international financial ...

Copyright, The New York Times Company Bailout mania began with the Bush administration’s attempts to boost bank capitalization rates. The Ob...

Treasury "capital injections" just result in greater payments to bank industry shareholders . Some of the ways it could work is th...

A recent study documents how troubled banks continue to pay dividends. Dividends are paid because the taxpayers are giving the banks more c...

This blog is based on the premise that we have the tools (esp. the tools of supply and demand) to understand what has happened in the econom...

It is reported that Goldman Sachs will issue common stock to repay their TARP loan. It is neither a coincidence nor a surprise that Goldman...

Copyright, The New York Times Company Subsidies can have a perverse effect on activity if they are debated too long. The banking sector bail...

Copyright, The New York Times Company Last week the Obama administration released what has become known as the “Geithner plan”: an administr...

Another hypothesis about the banking crisis is that there is an externality -- certain critical institutions harm the wider economy when the...

One hypothesis about the banking crisis is that a secondary market for mortgages "does not now exist" (quote from Mr. Geithner...

reports the IHT . The first bank bailout was needless. If enough Senators recognize that a second bank bailout would also be needless, then ...

At the end of September, both Democrat and Republican politicans tried to scare us into believing that payroll spending would collapse. The ...

Sorry, it does not fit the credit crunch stereotype.

If the credit crunch were the big deal people say it is, then you would think it would be readily visible in the investment data. It's i...

Bank of America received $45 billion bailout funds. Bank of America spent $50 billion to acquire Merrill Lynch. Bank of America CEO said tol...

In October I predicted that employment would not drop below 134 million. It hasn't yet -- but it got close enough in January that I am s...

Yesterday that was a Wall Street Journal headline (hat tip to Bryan Cross at UBS). Four months ago, that was a headline on this blog .

After Lehman failed and “credit markets froze” in the second half of September 2008, many people proclaimed that a second Great Depression w...