The chart above demonstrates how consumer spending typically lags GDP. One of the most gruesome features of our recent downturn has been the sheer depth of the unemployment crisis and how that has led to higher savings rates, leading to the need for businesses to lay off even more employees. Standard & Poors economists David…
Standard & Poor’s
Hot Links: The Marshmallow Test
Stuff I’m Reading this Morning… A new blog takes a look at how profitable vs unprofitable IPOs fare in the stock market. (TechFlash) Green Shoots! The return of tech M&A…here’s a list of all the recent deals. (GigaOM) Signs in exports, tourism and even housing that California could be turning. (LAT) S&P says corporate stock…
Ratings Agencies, aka The Three Stooges, Get a Taste of Regulation
[vodpod id=Groupvideo.3080520&w=425&h=350&fv=%26rel%3D0%26border%3D0%26] The Department of the Treasury just released this Fact Sheet to demonstrate what the administration’s agenda will look like as it pertains to reforming the ratings agencies. Standard & Poors, Moody’s and Fitch, aka The Three Stooges, will have an interesting experience figuring out a profit margin after these are enacted! Buffett agrees…
When Irish Debts are Piling
Somebody needs to get the Standard & Poors Monkey off of Ireland’s Back… The ratings agency just cut Ireland’s credit rating for the second time in 3 months (now down to AA). The cost of the Emerald Isle’s banking disasters have S&P spooked and as a result, the credit default swaps that determine the cost…
Hot Links: Maxine Waters, Bailout Nation and A-Rod
Hot Links for Weekend Reading This week, we watched another episode of half-educated Congressional grandstanding. This time around, the focus of misguided indignation was how much TARP money ended up being paid out to executive compensation and bonus by the largest banks. The show-stealer was none other than Maxine Waters, the representative of California’s 35th…
