Flow of funds analysis
By John Schroy, on March 26th, 2010 |

The Federal Reserve flow of funds accounts provide a general view of the financial situation of US corporations as of Q4 2009. The question that I would like to address is simply this: To what degree have US corporations been able to improve their financial liquidity since the Crash of 2008? Whereas behavior of US households indicates a shift to more conservative financial positions — with far higher levels of saving than prior to 2008 — corporations do not seem to have taken a similar course.
US Politics
By John Schroy, on March 24th, 2010 |

On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act. No one knows the full economic impact of this law. Never has legislation of such complexity and importance been passed by Congress and signed by the President on a purely partisan vote, against the wishes of the majority of the American people. The outlook for inflation has changed suddenly from a high level of probability to undetermined — uncertainty as to disbursement timing, combined with the outcome of elections in 2010 and 2012, provides possible scenarios under which things could get radically worse, or better.
Stagflation watch
By John Schroy, on March 20th, 2010 |

The lack of fiscal restraint of President Obama on the healthcare issue, the ’stimulus bill’, and other ‘progressive’ legislation in the pipeline, combined with the jobs-firsts-inflation-last attitude of Fed Chairman Bernanke — leave little room to doubt that sooner or later the United States is likely to enter the realm of double-digit inflation.
Inflation is likely be the final and deadliest blow to the retirement dreams of many Baby Boomers. When the stock market crashes, one can hope for a recovery some day. With inflation, the losses are permanent and final.
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