Category Archives: Finance

CFOs: Lower Rates via QE3 Will Not Spur Corporate Investment


I hope members of the FOMC will read this before their meeting on Thursday. The Duke-CFO Survey, released on September 11, 2012, provides sharp, new evidence that QE3 will not stimulate economic growth. CFOs clearly tell us (647 of 667 … Continue reading

QE Won’t Work This Time


There are two upcoming FOMC meetings: July 31-August 1, 2012 and September 12-13, 2012. With high likelihood, we will see another round of Quantitative Easing – or QE. Economists are split as to whether there would be any real benefit … Continue reading

Wrong time, wrong place for floating rate debt


Testifying before Congress back in 1993, when interest rates were 7.5%, I advocated shifting some of the Federal debt to floating rate debt. If the Treasury had shifted half of the debt to floating rate at that time, they would … Continue reading

Confronting Global Risks


I am doing a live Webinar on April 11, 2012 at 11:00am ET. It is called Confronting Global Risks. There is a preparatory video that is available here. The live session will take your questions. The basic topics are: I … Continue reading

Treating the Symptoms


A massive €530 billion liquidity injection occurred in Europe today in the form of LTRO. This helicopter drop does not solve the Eurozone’s problems: it merely delays them. The ECB is treating the symptoms not the disease.

New videos posted

I have just posted a number of videos that deal with current global macro events. They can be viewed on the gardenofecon youtube channel here. Will the austerity measures in Greece lead to a breakdown in civil society that breaks … Continue reading

The Run on Europe


There is a lull in negative news from Europe. However, it is short lived. There are four facts that are very important to understand: Most European banks are insolvent The ECB is massively monetizing to keep the system operational Germany … Continue reading

Seven new videos posted

I have posted seven new videos to Topics include: • What do you think of the announcement from the EU about a fiscal compact? • Is it a big deal that the U.K. is not in the agreement? • … Continue reading

The Last Man Standing


Which is a greater force driving volatility: uncertainty about whether the U.S. can get its budget act together or Europe’s future? I would argue that Europe poses a much greater risk — and it is less understood in U.S. markets. … Continue reading

6 New Videos Posted

You can access the videos at my youtube channel: The questions being answered are: 1. European debt crisis: a. What are the implications for the long term viability of the Euro? b. What is your perspective on the Greece austerity … Continue reading