Blogs - Michael J. Panzner RSS Feed

Red Ink: Not an Illusion

Michael J. Panzner — Fri, 04 Dec 2009 07:31:00 EST

Since the crisis began, banks and other financial institutions worldwide have written off or lost a staggering $1.7 trillion, though the losses have been cushioned by capital-raising to the tune of $1.5 trillion.

Intervention, Not Wisdom

Michael J. Panzner — Fri, 04 Dec 2009 07:29:00 EST

In a recent post, I took issue with the claim by Paul Krugman, Dean Baker, and others that low yields on U.S. Treasury and other bonds can be seen as validation of Washington�s aggressive policy of spending and borrowing to �rescue� the crisis-torn U.S. economy.

Not Just the Stock Market

Michael J. Panzner — Thu, 03 Dec 2009 08:13:00 EST

It's becoming increasingly clear that the so-called "recovery" is a sham or a fleeting moment, depending on your perspective. Despite that, the disconnect between Main Street and Wall Street continues to grow.

On the Ground, Pessimism Persists

Michael J. Panzner — Wed, 02 Dec 2009 06:45:00 EST

According to the "experts," the downturn is all but over.The majority of economists say so. Federal Reserve Chairman Ben Bernanke, Foreign Policy's top global thinker for 2009, apparently feels that way.

Still With Us

Michael J. Panzner — Tue, 01 Dec 2009 08:02:00 EST

Despite the gusher of cheap money and stimulus programs, the myriad bailouts and rescues, the ongoing regulatory forebearance and accounting rule changes, and the hundreds of billions of dollars of red ink spilled so far -- not to mention the cheerleading, wishful thinking, and time that has elapsed since things first began to fall apart -- many of the problems that helped bring about the worst financial crisis this century have not gone away.

The Harsh Reality

Michael J. Panzner — Mon, 30 Nov 2009 09:12:00 EST

In yesterday's post, "Forced to Be More Flexible", I highlighted a Brandweek report indicating that current economic conditions are leading consumers to rethink what they eat.

Consumers Cherry Pick Black Friday Sales

Michael J. Panzner — Mon, 30 Nov 2009 09:10:00 EST

The good news, according to the National Retail Federation, is that 195 million U.S. shoppers visited stores and websites this past weekend, an impressive 13% jump over last year.

Forced to Be More Flexible

Michael J. Panzner — Mon, 30 Nov 2009 09:08:00 EST

It doesn't take a rocket scientist to see that humans have a special relationship with food. Food doesn't just satisfy a physiological need; what we eat is also affected by other factors, including psychological cravings, as well as cultural and social conventions.

Time to Stick the Knife In

Michael J. Panzner — Mon, 30 Nov 2009 09:07:00 EST

In two recent posts, "Remarkably Naïve" and "Economists: Wrong Again," I derided claims by Paul Krugman and other economists with a dilettante's knowledge of how financial markets work that low yields on U.S. government bonds "can be seen as validation of Washington's aggressive policy of spending and borrowing to 'rescue' the crisis-hit U.S. economy."

The Debacle in Dubai

Michael J. Panzner — Mon, 30 Nov 2009 09:02:00 EST

I was a guest on two shows, BBC News' "World News Today" and Fox Business News' "Cavuto," where I discussed the fallout from news that Dubai will delay repayments on $60 billion of debt from its investment company, Dubai World

Swearing Off Old Habits

Michael J. Panzner — Fri, 27 Nov 2009 06:39:00 EST

Although many retailers and Wall Street economists are, to use a popular phrase, "cautiously optimistic," the evidence suggests that "Black Friday" and the overall holiday selling season will be disappointing -- see "Round-Up of Holiday Spending Surveys, Reports" for a bit of color on this.

Remarkably Naïve

Michael J. Panzner — Thu, 26 Nov 2009 07:32:00 EST

In "Economists: Wrong Again," I highlighted a major flaw in the logic of those Keynesian Kool-Aid drinkers who believe current low yields and stable markets can be seen as validation of Washington's aggressive policy of spending and borrowing to "rescue" the crisis-hit U.S. economy.

Interview at Behind the Spread

Michael J. Panzner — Wed, 25 Nov 2009 08:34:00 EST

Behind The Spread, a relatively new website featuring interviews with traders, investors, and others in the financial world, has just published a Q&A with yours truly, conducted by publisher Hiro Takei.

Round-Up of Holiday Spending Surveys, Reports

Michael J. Panzner — Wed, 25 Nov 2009 08:32:00 EST

If the following round-up of holiday spending surveys and news reports (with salient quotes) is anything to go by, those who have been counting on a V-shaped recovery in the (consumer-dependent) U.S. economy might want to reconsider:

Heeding the Populist Call

Michael J. Panzner — Tue, 24 Nov 2009 07:55:00 EST

It's clear that hostility towards Wall Street is increasing. Considering the well documented role that banks and brokers played in creating the mess we are in and the ways in which they manipulated the post-crisis clean-up to their advantage, the only real surprise is that it's taken so long.

Hitting the Market

Michael J. Panzner — Mon, 23 Nov 2009 08:49:00 EST

The financial crisis has left many people with little choice but to try and monetize what they hold most dear -- themselves. During the current downturn we've seen reports that growing numbers of individuals in the U.S. and elsewhere are selling their eggs, sperm, plasma, and even their organs, or renting out their wombs and bodies, to raise cash.

Economists: Wrong Again

Michael J. Panzner — Mon, 23 Nov 2009 08:47:00 EST

As if they didn't cause enough damage by espousing theories that failed to account for the inefficiencies and irrationalities of the real world, many economists are advocating aggressive spend-and-borrow policies to revive the financial crisis-hit U.S. economy that reflect an astonishing degree of naïveté and ivory tower hubris.

One Hand Taking Back What the Other Is Doling Out

Michael J. Panzner — Mon, 23 Nov 2009 08:45:00 EST

Leaving aside the question of whether those who expect a repeat of what happened eighty years ago will be proved correct, they have been right about one thing.

The Upside of the Downside?

Michael J. Panzner — Fri, 20 Nov 2009 07:29:00 EST

While many people are reportedly turning to comfort food to help them cope with the downturn, it seems that some are moving in a healthier direction, according to Britain's Telegraph, in a report entitled "Americans Run Off the Recession in Record Numbers":

Big Pain at Small Firms

Michael J. Panzner — Wed, 18 Nov 2009 19:36:00 EST

If policymakers were thinking ethically, rationally, and clearly -- a big "if" considering their role in creating the mess we are in --