Last week, the Chairman of the Federal Reserve, Ben Bernanke, told Congress that he didn’t know what to do about the economy and the repeated need for bailouts. This week, the Oracle of Omaha Warren Buffett, Chairman of Berkshire-Hathaway told the press that he couldn’t understand the financial statements of the banks getting the bailout money. read more »
Compared with most businessmen, 41-year-old Charlie Wilson has some reason to like the economic downturn. President of Salvex, a Houston-based salvage firm he founded in 2002, Wilson has seen huge growth in the bankruptcy business over the past year. It is keeping his 10-person staff, and his 55 agents around the world, busy. read more »
The salary of the chief executive of a large corporation is not
a market award for achievement. It is frequently in the nature of a warm personal gesture by the individual to himself.
John Kenneth Galbraith
What would Galbraith have said about the AIG bonuses? read more »
Warren Buffett was on CNBC for three hours on March 9, 2009, dishing out his wisdom. All this fanfare despite having lost $24 billion in value last year, and handing the title of Richest Man in the World over to Bill Gates. Buffett made multiple references to “war” in describing the current financial crisis. read more »
My father was a career enlisted man in the United States Air Force. I was in the third or fourth grade when he graduated from high school. My mother graduated from high school after I was married. My dad worked for several companies after his Air Force career. He was working for Disney when he died. My mother worked part time in child care from time to time. read more »
By Richard Reep
As in many places, the poor economy is forcing many families in affluent Winter Park, Florida to make some necessary adjustments. One of the most basic adjustments relates to shopping for food and staples. In better times, Winter Park was ruled by two Publix supermarkets and a Whole Foods. Grocery-cart conversation among friends became a common event; now this smooth, middle-class lifestyle pattern has been disrupted. read more »
In the past year or so, traveling the various geographies of this country has become increasingly depressing. From the baked Sun Belt suburbs to the green Valhallas of Oregon and the once luxurious precincts of Manhattan, it is hard to find much cheer--at least from entrepreneurs--about the prospects for the economy.
Until recently Texas, and particularly Houston, has been one of the last bastions of that great traditional American optimism--and for good reason. Over the past few years, Houston has outperformed every major metropolitan area on virtually every key economic indicator. read more »
Ben Bernanke made the following statement as he attempted to justify bailing out bad borrowers:
“…from a policy point of view, the large amount of foreclosures are detrimental not just to the borrower and lender but to the broader system. In many of these situations we have to trade off the moral hazard issue against the greater good.” – Ben Bernanke, February 25, 2009
I think he is wrong on this, and the moral hazard issue is only a small part of my objections. read more »
Federal Reserve Chairman Ben Bernanke testified before the Senate Budget Committee on Tuesday (March 3, 2009), the day after it was announced that AIG would be back at the federal teat for another $30 billion. The generally subdued Senate was nonetheless forceful in getting Bernanke to admit several things: read more »
This is the Democratic Party's moment, its power now greater than any time since the mid-1960s. But do not expect smooth sailing. The party is a fractious group divided by competing interests, factions and constituencies that could explode into a civil war, especially when it comes to energy and the environment.
Broadly speaking, there is a long-standing conflict inside the Democratic Party between gentry liberals and populists. This division is not the same as in the 1960s, when the major conflicts revolved around culture and race as well as on foreign policy. Today the emerging fault-lines follow mostly regional, geographical and, most importantly, class differences. read more »