Category Archives: Budget Deficit

The Illustrated History of the U.S. Credit Collapse

Posted on December 10, 2010 by macromon

We constructed these charts with data from today’s release of the Federal Reserve’s Flow of Funds.  They are both stunning and frightening as they illustrate the cardiac arrest that took place in the credit markets.  The  collapse in credit issuance/borrowing … Continue reading →

Posted in Black Swan Watch, Budget Deficit, Charts, Fiscal Policy, Sovereign Debt, Sovereign Risk | Tagged , , | 2 Comments

“A money-financed tax cut is…[a] ‘helicopter drop’ of money”

Posted on December 9, 2010 by macromon

Wow!  Sounds a lot like what the President and Congress just negotiated, no?  Tax cuts financed by QE2 and a possible QE3?  Break out the Apaches! Here is the excerpt from his famous  helicopter speech, given at the National Economist … Continue reading →

Posted in Budget Deficit, Commodities, Gold, Monetary Policy, Sovereign Debt, Sovereign Risk | Tagged , , , | 4 Comments

Einhorn: “Global Economy in a Period Between Two Crises”

Posted on December 7, 2010 by macromon

A must view Charlie Rose interview with David Einhorn, President of Greenlight Capital.   He is a very smart guy with an excellent track record. He speaks of the absurd way we calculate official inflation in the U.S. using the Apple … Continue reading →

Posted in Black Swan Watch, Budget Deficit, Economics, Sovereign Risk, Video, Whales | Tagged , | Leave a comment

December 7th – A Rate Move Which Will Live In Infamy

Posted on December 7, 2010 by macromon

CNBC puts an interesting spin on the stock market sell-off and reversal in almost all commodities today, blaming the SEC insider trading probe.  We have a different view, believing it was the historic rise in long-term rates. Today’s 23 bps … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Charts, Commodities, Credit, Crude Oil, Economics, Equities, Fiscal Policy, Gold, Politics, Sovereign Risk | Tagged , , | 3 Comments

Chart of the Day: ECB Bond Purchases

Posted on December 6, 2010 by macromon

They’ve only just begun…

Posted in Black Swan Watch, Bonds, Budget Deficit, Charts, Credit, Currency, Economics, Euro, Fiscal Policy, Monetary Policy, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , , | Leave a comment

Merkel Warned EU Germany Could Leave the Euro

Posted on December 4, 2010 by macromon

The slow motion fracturing of the Eurozone continues as revelations surfaced that German chancellor, Angela Merkel warned the EU her country could abandon the euro.  The Guradian reports the threat took place at the EU Summit in Brussels at the … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Euro, Fiscal Policy, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , , , , , | 3 Comments

Share of U.S. Income and Federal Taxes, by Income Quintile

Posted on December 4, 2010 by macromon

This is an interesting chart from the Congressional Budget Office (CBO) showing the share of income and federal tax liability by income quintile.  In 2007,  the average income of the bottom quintile was $18, 400;  the middle, $64, 500; and … Continue reading →

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Rogoff on Euro Crisis: “Endgame…a wave of debt writedowns”

Posted on December 2, 2010 by macromon

One of the best pieces we’ve seen on Europe’s debt crisis is Kenneth Rogoff’s, The Euro at Mid-Crisis, posted today over at Project Syndicate.  He doesn’t hold back in criticizing how policymakers, excluding Angela Merkel,  are deluding themselves and in … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Euro, Fiscal Policy, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , , , | 1 Comment

Chart of the Day: Banks to Sovereigns to Banks

Posted on November 27, 2010 by macromon

Great chart from IMF showing feedback loop of Europe’s Sovereign Debt Crisis.  A little busy, but stick with it.

Posted in Black Swan Watch, Bonds, Budget Deficit, Credit, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , | Leave a comment

Run on German Safe Deposit Boxes? WTH?

Posted on November 26, 2010 by macromon

The implosion of the Eurozone appears to be accelerating. But Germany?  Come on!  Yet Ambrose Evans-Pritchard writes the crisis in the eurozone periphery is moving to the core as credit default swaps for German, French,and Dutch bonds have blown out … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Fiscal Policy, Geopolitical, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , , , , | Leave a comment