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Neil Grossman

Entries by Neil Grossman

We Need to Protect Employment

(4) Comments | Posted February 27, 2009 | 6:34 AM

I don't know of anyone who thinks that the employment crisis is not at the top of the list of government priorities. And yet, despite the combination of massive stimulus packages and financial bailouts, little success has been achieved to date. As I write, unemployment is at generational highs; and...

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Good Bank, Bad Bank, Naive Public

(4) Comments | Posted January 28, 2009 | 8:08 AM

Well, here's the newest plan...Good Bank, Bad Bank. Take all of these bumbling institutions and split them into two pieces. One piece will contain the residual part of the bank that ostensibly works; i.e. the assets that have value including the management teams (not that they are necessarily assets) and...

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One Unhappy Customer

(4) Comments | Posted January 6, 2009 | 9:45 AM

General Motors Corporation
Attn: Mr. G. Richard Wagoner, CEO
Ford Motor Company
Mr. Alan R. Mulally, CEO
Chrysler Corporation
Mr. Robert L. Nardelli, CEO
Detroit, Michigan


I watched with interest as you paraded to Washington on your private jets begging for money and,...

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"Mind-Boggling" is Not Descriptive Enough

(3) Comments | Posted October 31, 2008 | 2:58 PM

A few weeks ago, our illustrious political and financial authorities, through the guise of our Central Bank, determined it was necessary to provide financial assistance to the American International Group (AIG). AIG, one of the largest insurance companies in the world with a tangled web of liabilities, was on the...

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The Buck Stops Anywhere But Here

(0) Comments | Posted October 12, 2008 | 8:04 PM

When I was young, I was taught that people were expected to assume responsibility for their actions. The idea was encapsulated in a quote that appeared on President Truman's desk. Remarkable in its succinctness, the quote read "The Buck Stops Here". Unfortunately, as the years have passed, that simple concept...

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The Bailout: Don't Believe Everything You Hear

(3) Comments | Posted October 1, 2008 | 12:16 PM

After a relatively quick read of the Bailout Legislation, here are a few quick points. Our Congressional Representatives have asserted that they are most interested in protecting the interests of the American Taxpayer. I can only summarize my comments by saying "Don't Believe Everything You Hear."

(1) The Legislation covers...

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Good Money After Bad

(16) Comments | Posted September 29, 2008 | 2:07 PM

I was watching one of the senators discuss the bailout package this morning on TV (which one is irrelevant since all those in favor sound the same). This august figure sat there explaining how the public is going to make money on the purchase of distressed assets from struggling financial...

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You Really Believe We're the Priority?

(23) Comments | Posted September 28, 2008 | 3:38 PM

As the Bailout Bill nears completion, one of the principles being espoused is to protect the taxpayer. Pardon me if I express some healthy skepticism here by example.

Late last week, Washington Mutual, the nation's largest thrift institution collapsed. Wamu closed its doors one evening and woke up the...

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The Law of Unintended and Unanticipated Consequences

(1) Comments | Posted September 25, 2008 | 7:30 AM

Our Government does not handle dissent or opposition very well. The Bush Administration has refined this to a science. But the Congressional hearings on the Paulson bailout package hammer home the point, and should raise a red flag as high and as poignantly as the flag the Marines hoisted at...

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Paulson says "Just Trust Me"

(3) Comments | Posted September 24, 2008 | 1:24 PM

Yesterday, we bore witness to an amazing event. The Secretary of the Treasury and the Chairman of the Federal Reserve appeared in Congress, hustling a financial system bailout plan of enormous size. The subject and the scope of this rescue package are amazing in themselves. The speed with which it...

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Speed is of the Essence, But So is the Right Solution

(68) Comments | Posted September 22, 2008 | 9:18 PM

I have not commented much on the disastrous events that have engulfed the global capital markets since the Bear Stearns debacle. In part, this is because I am opposed to bailing out institutions that take risk for profit and must assume the risk of loss. "Moral Hazard" is a very...

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Trickle Down Monetary Policy

(3) Comments | Posted April 8, 2008 | 7:27 AM

Given recent events, there has been growing criticism over Federal Reserve Policy. In today's print, Alan Greenspan defends his reign as Chairman of our Central Bank. I have dusted off a few thoughts on this period which, I believe point out some of the errors made during his tenure. This...

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(0) Comments | Posted April 7, 2008 | 7:33 AM

There is not a day that passes without a vast analysis of the relative merits of a Clinton or Obama presidency. One claims to have more experience. Another claims to be the voice of change. Both think they are qualified to answer the telephone at 3 A.M. (or any other...

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An Unbearable Burden

(20) Comments | Posted April 6, 2008 | 5:46 PM

To the "average" person who pays attention to the fiscal situation in this country, they are used to seeing stories about annual deficits of a few hundred billion dollars. Bad as they are, these numbers represent only a fraction of the total liability that this country has amassed. If you...

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When Incompetence Is Rewarded

(0) Comments | Posted April 5, 2008 | 7:35 AM

We are not terribly tolerant of failure. A CEO who disappoints investors and the markets often finds plenty of time to read by the fireside. A coach or manager who can't win finds his ears ringing from boos and is soon nothing more than a spectator. Yet, when it comes...

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Support the Economy, Push the Banks

(38) Comments | Posted April 4, 2008 | 3:39 PM

I have been critical of policy and policy response from the Federal Reserve (as well as the Treasury) for quite some time. I often refer to the Fed's approach as ostrich economics. Their short-sighted policies have dug us into a fine mess. Across the entire spectrum, people have been suckered...

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The Beggar's Banquet

(13) Comments | Posted April 2, 2008 | 2:38 PM

Chairman Ben Bernanke
Board of Governors of the Federal Reserve System
Washington, D.C. 20551

Dear Ben:

I hope you don't mind the informality, but I feel like you should always be able to call your banker by his first name.

I noticed this morning that...

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