Archives for: Goldman Sachs

Henry Paulson. “Hank”. Remember him? Lean, balding, the flared nostrils of a man perpetually haunted by the memory of having to clean dog’s mess from the shoes of his neighbour’s children. Of the crisis in 2008, he said, “Where I come from, if someone takes a risk and they’re going to make the profit from [...]

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Volcker Rule: Too Big to Enforce

by Mitch Feierstein about 9 months 3 weeks ago

As the initial shocks of the financial crisis of 2008-09 began to subside, policy makers – shattered by the scale and velocity of what they had just witnessed – started to think about earthquake prevention measures: how to stop the same thing happening all over again, One of the simplest, and best, such suggestions came [...]

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Wall Streets Latest Dirty Little Secret – The Fix Is In

by Mitch Feierstein about 10 months 1 week ago

At yet another select committee recently – they’ve been doing a good job – Vince Cable was grilled about the huge leap in the Royal Mail’s stock market value. As you’ll remember, the firm was floated at 330p a share and traded as high as 600p in November, a rise of 82% in a few [...]

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We put out one fire but now Mark Carney wants to start another

by Mitch Feierstein about 1 year 3 weeks ago

Mervyn King’s decade at the Bank of England was a disaster. The Bank was too slack during the long and indisciplined boom, under prepared for the crash and playing catch-up thereafter. The legacy of Lord King’s (and Gordon Brown’s) career has been an economy still limping along far below peak output, real wages caught in [...]

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An America divided against itself: US debt is way past the ceiling

by Mitch Feierstein about 1 year 1 month ago

Barack Obama made a speech recently pledging his opposition to (yet another) game of chicken over America’s debt ceiling. “This is the United States of America,” he told his audience. “We’re not some banana republic. This is not a deadbeat nation. We don’t run out on our tab. We’re the world’s bedrock investment – the [...]

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On 15 September 2008, Lehman Brothers, a “bulge bracket” investment bank, filed for bankruptcy. That should have been no big deal. The failure of a single, poorly run institution should have had no broader effect on the domestic US economy, let alone the global one. Things didn’t pan out that way. Lehman Brothers was the [...]

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The dual mandate of the Federal Reserve is a good one. It is charged with ensuring stable prices and maximum employment. That’s a good basic recipe, one which served the country well. And notice what isn’t there. The Fed is not charged with distorting natural market pricing mechanisms to the point of perverting risk. It [...]

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Currency Wars Have Begun: Central Banks in Denial or Worse

by Mitch Feierstein about 1 year 8 months ago

Here’s a piece of recent news that you almost certainly missed: A large consumer products company, Johnson & Johnson, announced a one-off loss owing to a 32 percent currency devaluation in Venezuela. The reason I expect you missed that less-than-seismic piece of news is that, unless you happen to be particularly fascinated in Johnson & [...]

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Obama’s an accomplished individual. Smart, cool, in control. But his standout quality is probably his ability to create euphoria. Create it, sustain it, ride it. Watch the people celebrating with him at his victory rally in Chicago and you could easily believe that the USA had just won a war or beaten a recession. Unfortunately for [...]

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Simple Math Says Europe Is Bankrupt

by Mitch Feierstein about 2 years 5 months ago

There’s a lot of talk about Europe at the moment, but it’s kind of the way you talk about flooding when the waters don’t reach your house. Sure, it must be real tough for the poor saps whose couches are bobbing around in their living rooms — but meantime, what’s for dinner? Unfortunately, that European [...]

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