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Garrett Johnson
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Entries by Garrett Johnson

The Crowning Failure of the Old Governments

(1) Comments | Posted October 13, 2010 | 3:55 PM

The world's leaders gathered in Washington last weekend to try to address the global imbalances that continue to weigh on the economies of the world. It didn't go well.

The IMF meeting, meant to lay the foundation for some greater co-operation on the co-ordination of national economic...
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Fairy Tales and History Rhymes

(5) Comments | Posted August 16, 2010 | 4:07 PM

Perhaps the worst insult you can hurl at a politician these days is to give him the middle name of "Hoover."

Such as George Hoover Bush and Barack Hoover Obama. 80 years later Herbert Hoover is still the standard for the "do-nothing"...

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Why the Economy Isn't Recovering

(0) Comments | Posted July 20, 2010 | 6:05 PM

There has been a lot of talk about a double-dip recession recently by people like Paul Krugman and Nouriel Roubini: how to define it, and what it means. What is missing from these discussions is the most obvious question of all: why won't the economy recover?

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What's Really Going on With the Economy?

(0) Comments | Posted July 6, 2010 | 11:45 PM

The whispers on Wall Street lately have been the feared "double-dip." There is a much louder chorus of people proclaiming that we are only looking at a "slow-down." Of course they were the same people who were telling us as recently as April that we were in a ...

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What Must the World Think of Us?

(4) Comments | Posted July 1, 2010 | 12:49 PM

The sacking of General Stanley McChrystal, the commander of U.S. forces in Afghanistan, received an immense amount of media coverage last week. The narrative basically focused on the disrespectful ways McChrystal talked about the Obama Administration.

Unfortunately, the news media never got around to asking what the...

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Austerity and Class War

(1) Comments | Posted June 29, 2010 | 12:17 PM

The Republican's filibuster of the "tax extenders" bill will have severe economic consequences. Moody's is predicting the loss of 200,000 jobs. Nomura Securities says it will knock 0.4% off of the GDP. A good 2 million unemployed families will have their last financial lifeline cut...

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Slouching Towards Neofeudalism

(17) Comments | Posted May 10, 2010 | 2:00 PM

The financial crisis that grips our nation's states and cities has a malicious source, and Governor Tim Pawlenty recently named that source: public school teachers.

"It used to be that public employees were underpaid and over-benefited. Now they are over-benefited and overpaid compared to their private-sector counterparts."
...

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IMF Prepares for Financial Meltdown

(14) Comments | Posted April 14, 2010 | 11:52 AM

The IMF has been making a lot of noise recently, but their biggest move almost managed to slip through completely unnoticed.

The Executive Board of the International Monetary Fund (IMF) today approved a ten-fold expansion of the Fund's New Arrangements to Borrow (NAB, and transfer the Fund's...

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The Biggest Financial Bailout of Them All

(15) Comments | Posted March 6, 2010 | 4:30 PM

Let me take you back to Christmas Eve, 2009. It was a time to wrap gifts for loved-ones. That's how the Obama Administration felt about the financial industry when it lifted all caps in emergency bailout money to Fannie Mae and Freddie Mac. That means the taxpayer was...

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Why Aren't These People in Jail?

(0) Comments | Posted March 2, 2010 | 12:04 AM

This may be the only time in my life I will ever utter these words: "We could learn a lot from Indonesia."

Indonesian police have used tear gas and water canon to disperse about 2,000 anti-government protesters who tried to enter the parliament building in the capital, Jakarta.

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Junk Economics and the Assault on the Middle Class

(10) Comments | Posted February 23, 2010 | 4:09 PM

"Behind every great fortune lies a great crime."
- Balzac

Capitalism hasn't failed. What has failed is the economic system in place today.

No amount of government taxes, trade barriers, or regulation caused it to fail. No investigative reporter, or congressional oversight committee, or regulatory watchdog, exposed the...

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The Ouzo Effect

(1) Comments | Posted February 9, 2010 | 10:23 AM

Jim Reid, a London-based strategist at Deutsche Bank, had something interesting to say last week regarding the economic crisis in southern Europe: "The problems currently faced by peripheral Europe could be a dress rehearsal for what the U.S. and U.K. may face further down the road," he wrote in...

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Here Comes the Screw Job

(6) Comments | Posted January 11, 2010 | 12:19 PM

"The 401(k) system has to be fixed, and I don't know anybody who can fix it but the federal government."
- John Bogle

Late last week the federal government began floating proposals for reforming America's broken retirement system. The proposed reform centers around the idea of getting...

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We have been warned

(0) Comments | Posted January 4, 2010 | 1:52 PM

The underlying assumption that the current world monetary system is built upon is that America will always over-consume and the world will always accept our debt at face value. It's a warped and unhealthy relationship, but its worked (sort of) for several decades. That's why it was notable when a...

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The Battle in the Citadel of Capitalism

(0) Comments | Posted December 17, 2009 | 9:29 PM

"They lay there, clinging to one another and trying to shield the more vulnerable parts of their bodies from the blows of the nightsticks, while the police hauled them apart and dragged them bodily into waiting patrol wagons."
- NY Times, March 31, 1948


Every once in a...

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Golden Myths

(0) Comments | Posted November 30, 2009 | 1:55 PM

I don't believe there is any investment, outside of a mania, that elicits more emotion, both positive and negative, than gold. People love it or hate it, there isn't much in between. It's because of these strong emotions that there are so many misconceptions about the yellow metal. Emotions tend...

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The Approaching Muni Bond Collapse

(4) Comments | Posted November 5, 2009 | 3:30 PM

New York Lieutenant Governor Richard Ravitch made a statement last week that should have gotten headlines, but didn't.

"I believe that the states across the United States will face deficits a year after stimulus ends of $300 billion to $500 billion a year," Ravitch told about 200...

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The GDP of Stimulus

(6) Comments | Posted November 3, 2009 | 5:31 PM

Now that the Great Recession has been declared dead and gone by everyone who failed to see the possibility of it happening in the first place, it is important to examine the reasons for its demise.

The White House has been busy declaring that its stimulus policies have ...

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No Love for Uncle Buck

(10) Comments | Posted October 14, 2009 | 2:00 PM

A lot can happen in two weeks. Normally the foreign exchange market for developed nations move like glaciers. But in these days of global warming even glaciers are breaking speed limits.

Less than two weeks ago the World Bank President had some interesting things to...

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Sacrificing to the Volcano God

(6) Comments | Posted October 13, 2009 | 5:19 PM

Hundreds of years ago the Incas would sacrifice virgins to appease their Volcano God.

The Gods and methods of sacrifice may have changed, but the tradition remains.

Like the Incas of old, we find ourselves helpless against forces we do not understand. The foundations...

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