Meaning a cost shift from creditors to taxpayers. Obviously, the gov’t of the island borrowed far beyond their means–see the John Oliver link for great and even entertaining detail on the evolution of the crisis. And thus an oversight board is a reasonable quid pro quo for restructuring. But if not for the legal quirk… Read more
Early next week, I’ll have a piece out on the ongoing debt crisis in Puerto Rico which strongly urges Congress to act before restructuring morphs into bailout. But in the meantime, here’s everything you need to know about this issue from the absolutely brilliant John Oliver. If only I could be 1/10th this entertaining when… Read more
OK, it’s official: my mind is blown by two new, smart, common sense, progressive initiatives that the Obama administration–with great input from Treasury and the Labor Dept.–has managed to implement this week. Each deserves, and will get, individual attention and explanation from me. But for now, let us marvel at what’s happened here, especially as… Read more
With most economic variables, I think we make too big a deal about crossing zero on the number line. I don’t feel great if real GDP’s growing at 0.2% and horrified if it’s at -0.2%. Deflation with price growth at -0.5% isn’t terribly worse than disinflation with price growth at +0.5%. But with nominal interest… Read more
Well, there’s the stock market and there’s the real economy. They’re related but they’re not the same thing. Here’s why. To be clear, nobody knows when the next recession will hit, so I’m decidedly not saying all clear, happy-dappy! To the contrary, I strongly urge us to be ready for the worst.