Mas dinero, pero nunca para la gente. Solamente para bancos. Revolución!!!

I think what they are doing here is what Ramon was arguing against, except this time, they are going foreign. This is not going to help their image, and justifiably so. I jokingly added the title, as I feel this is how it is going to be spun in the near future.


La contracción del crédito segundos

I think the 2nd round of major credit tightening is about to begin. This article articulates what is beginning to occur in banks becoming more skittish about the happenings in EU and the compiling of uncertainty that is bound stress credit markets worldwide. Let’s hope they can get their economic act together, as well as the US because I think this is a preview of what can happen to us since we are in a period of super cheap borrowing. But, the austerity measure should be moderate. Nothing like what Greece is experiencing because that is too much too soon.

Steven’s specialty

In this article, we tackle the question if inflation is good, or not. It continues here. Personally, I am not a big fan of NGDP targeting because it assumes that growth is constant with some fluctuations. I am more of a fan of maintaining price stability, mainly because it gives assurance to how we can forecast our expectations, given the large amounts of uncertainty.

Finance Job Losses Near 200K as Firms Cut Back

BLS has cited that both financial and government employment have been leading the charge when it comes to cutting employment. Labor is arguably the highest cost of any firm public or private and is more than likely why we should not be surprised by this article.

Fisher Wants to Break Up Big Banks

The Dallas Fed President spoke today on breaking up the too-big-to-fail banks.  He believes the industry has become way too concentrated, with half of the industry’s assets sitting on the reserves at the largest five institutions.  He wants to break up the institutions in to more manageable institutions, emphasizing that the bank’s are too large and complex to truly know their customer and follow reliable and responsible risk management practices.

My favorite quote:

Yet, in my view, there is only one fail-safe way to deal with too big to fail. I believe that too-big-to-fail banks are too-dangerous-to-permit.

Economics on the Daily Show

On discrimination against the ugly American.

Aside: Should we go with blogspot? It let’s you post videos. WordPress is crankier. It let’s you embed youtube vids, for example, but in general it does not allow for embeds except on its non-free service.

Hey Mike Shanahan: Icing the kicker is about as effective as the rest of the Redskins’ playcalls

Makes sense, doesn’t it? The coach can “ice” the kicker — mess with his mind, throw off his routine, make him stand around like an awkward guy at a cocktail party for all the world to see.

But does it work?

The short answer: No. In their book Scorecasting, Tobias J. Moskowitz and L. Jon Wertheim marshal the most compelling evidence to date on the subject, analyzing “pressure” kicks from 2001 through 2009 while controlling for distance of the field-goal attempt. They found that icing the kicker certainly doesn’t produce the desired effect, and in some cases might even backfire.