Click the image to watch me talk about Andrew Ross Sorkin’s piece on Glass-Steagall and where he gets it wrong.
Archive for May 23rd, 2012
Notes From Underground: Caught Between a Portfolio Balance Channel and a Fiscal Cliff
May 23, 2012What has Ben Bernanke wrought? Since the FED CHAIRMAN uttered that Phrase ”FISCAL CLIFF” at the now infamous April 25 press conference, the S&P has dropped more than 6% (take out month-end window dressing). Investors were unnerved by the Bernanke acknowledgement of a huge drop in GDP if the Washington politicos did not start to deal with the problem of fiscal retrenchment that awaits. It has been estimated that the hit from spending cuts and tax increases will result in at least a 3.5% hit to U.S. growth. It was Bernanke that lit the fuse and today the CBO weighed in with its great concern over the “fiscal cliff.”
