Will Consumer Spending Resume and Revive the Economy?

In an effort to revive their economies and spur consumer spending, world leaders are attempting to inject money into many economies around the world.

So, where will all this money come from? Read more »

Think That the Worst Is Over? Read This

According to an article published in “The Wall Street Journal” on May 21, 2009, the economies of the United States and three of its most prominent trading partners, Mexico, Japan and Germany, all contracted, and contracted significantly.

The United States economy contracted at an annualized rate of 6.3%, while the German economy contracted at an annualized rate of 14.4%, Japan’s economy contracted at a an annualized rate of 15.2%, and Mexico’s economy at an annualized rate of 21.5%.  It was Japan’s worst performance since 1955 and Germany’s worst report since 1970. 

Why these huge declines?

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I Told You So

Not long ago, when the Obama administration announced it was going to roll out a housing rescue program called the “Mortgage Modification Program”, I wrote that while I was personally fundamentally opposed to government intervention in this market, the Obama plan, as proposed, would likely not work.  (See my blog entry of February 23, 2009).

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