Instead of boring you with another economic story I wanted to share a story about my Mom for Thanksgiving. She died almost two years ago and I still miss her very much. But there are a few holiday memories of her that I will always cherish.

Like all Moms...

Above is a chart from the Bureau of Labor Statistics. It shows total number of establishment jobs starting in 1945 -- essentially right after WWII. Note that we can break this graph down into a few different time periods. Let's look at each of...

In my previous article I highlighted the general economic problems President-elect Obama faces. In short order these are the housing crisis, the financial crisis, the trade deficit, a recession, and a fiscal situation in ruins. This article will outline some of the possible policies -- as well as...

To President elect Obama: congratulations. You have won an impressive victory. However, there is much work to be done. Most people who voted felt the economy was the most important issue. There is a good reason for that: the economy is in terrible shape and stands a high possibility of...

I have been no friend of this expansion. There are several reasons. The first is the mammoth accumulation of debt which has occurred over the last eight years. When I started writing about the economy four or so years ago this was one of the figure that literally jumped right...

I've been watching the news for the last few days (or maybe the last week) and frankly the fact that any intelligent idea actually gets out and discussed in the national media seems far-fetched and impossible. According to right wing talkers/news outlets, Obama is a socialist and that's bad. The...

I live in Houston, Texas. All we have on the AM radio dial is right-wing radio. While 24 hours of the likes of Rush, Hannity and their ilk may seem a bit much (and it really can be at times) it also offers some great humor.

Exhibit number 1....

From the WSJ:

The U.S. government is expected to take stakes in nine of the nation's top financial institutions as part of a new plan to restore confidence to the battered U.S. banking system, a far-reaching effort that puts the government's guarantee behind the basic plumbing of financial...

I originally wrote this on October 21, 2006. But it seems especially prescient now.

I remember the painful memories of election 2004. The exit polls gave Kerry Ohio and hence the election. Sean Hannity was fuming. Various other conservative pundits -- who had earlier predicted a Republican dominated country for...

From Bloomberg:

The Federal Reserve will create a special fund to purchase U.S. commercial paper after the credit crunch threatened to cut off a key source of funding for corporations.

The Treasury will make a deposit with the Fed's New York district bank to help set...

Wow. It's only Monday and the markets are getting creamed. The SPYs are down 4.34%, the QQQQs are down 3.65% and the IWMs are down 4.75%. The bottom line is the markets are not happy with the way things are going. And there is plenty of reason to be unhappy.

As far as I have seen, no one has offered any solution to the credit crunch that makes any sense. Frankly, I am beginning to think there is no palatable solution. However, let's look at the plans that have been offered to see what the problems are.

First -- let's...

There's a draft memo going around that makes proposals regarding the bailout. unfortunately it won't work. Here's why.

Here's the relevant part:

According to a bill summary, the legislation would require the FDIC to survey the banking industry and issue short-term loans (through an exchange of "net worth...

Because this mess has happened on the Republicans watch they are going into massive spin mode. While their stories are easily dismissed by, well, facts, their rationalizations are still getting into mainstream political dialog. So.....

There are a ton of great theories being floated right now. A few of them...

Below are the reasons Congress should reject the package unless there are major changes to the bill. Simply put, as it stands the bill will grant far too much power and authority to the Treasury and will screw the US taxpayer while rewarding companies for incredibly bad decisions.

Let's go...

I've been having some very interesting conversations over the last few weeks. One of the best is with Johnny Wendell, who hosts a Saturday morning radio show in KTLK in Los Angeles. I do a show with him called econ 101 at 7:30 every Saturday (a truly shameless plug if...

Last week was historic. It is a week that financial and economic people will study for generations. It also marked the end of certain elements of the Republican Party's ideology. Below are statements the Republican party can no longer claim as part of their core ideology.

We are the party...

Last week was historic. It is a week that financial and economic people will study for generations. It also marked the end of certain elements of the Republican Party's ideology. Below are statements the Republican party can no longer claim as part of their core ideology.

We are the party...

There's a meme going around the right wing blogs. Deregulation has nothing to do with the current problems in the market. The real culprit is the Community Reinvestment Act signed into law by President Carter in 1977. Nothing could be further from the truth as a reading of the facts...

From Reuters:

Between the $29 billion the Fed pledged to swing the Bear Stearns sale to JPMorgan in March, $100 billion apiece to rescue mortgage finance firms Fannie Mae and Freddie Mac, up to $300 billion for the Federal Housing Authority, Tuesday's $85 billion loan to insurer AIG...