WASHINGTON | Two online games posted in two regional Federal Reserve’s banks (San Francisco and Atlanta) enable us to forecast that the extremely accommodative US monetary policy will continue for a long period of time.
MADRID | Post-war capitalism, in which the state had a leading hand addressing needs and creating markets, had extraordinary good results.
WASHINGTON | The key aspect of the sequester will be noticed in some other form–34 percent of the States’ budget comes from the Federal Government. Now, those transfers are going to be cut because of the sequester.
NEW YORK | Obama didn’t manage to resume the peace process between Palestinians and Israelis because there was nothing to resume. The surprise is that his trip did work to boost Israel-Turkey relations.
MADRID | Juan Enrique Cadinanos, at Hanseatic Brokerhouse, thinks US equity markets are too expensive for a slowed down economy under the burden of a huge state debt.
NEW YORK | The institution that UK government is thinking of establishing, similar to US giant government controlled agencies Fanny Mae and Freddie Mac, will improve the housing market and therefore the economy. But it comes with the risk of a bubble.
WASHINGTON | The problem wasn’t just the forced flexibility implied in the S&P models to rate AAA what should had never been awarded top quality grades. The supervisory models themselves were incorrect, to start with.
By Bulent Temel | Social democracy promoted by the late Harvard political economist John K. Galbraith is the future of capitalism with its emphasis on equity and responsibility alongside prosperity.
Argentina has so far led investors to believe that it is ready to default if necessary to avoid the New York court’s ruling. That reaction, although less than surprising, would worsen further its lack of credibility.
By CaixaBank analysts | The reduction in doubtful loans, easier financial conditions and creation of households will continue to support the recovery in housing. But persistently low participation in employment is a source of risk for 2013.