Tag Archives | US Congress

One rule for banks, another for manufacturers

The excellent Gretchen Morgenson makes a good point in her New York Times column today. As she puts it, “here in Bailout Nation, you’ll be surprised to learn, some of us are more equal than others”. Her argument is that Congress is operating to double standards. Last week, it refused to support $14bn of lending […]

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Bailout passes, Wall Street falls

‘Buy on the rumour, sell on the news’ is the classic definition of a weak market. So the US stock market’s reaction to the passing of the US bailout is a worrying indication that further problems may lie ahead. On 19 September, the Dow rocketed to 11388 as the bailout was confirmed. Last night, as […]

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A political crisis in Washington

As if a global financial crisis wasn’t enough, we now have a political crisis in the USA. Leaving aside the question of whether the ‘bailout’ would have worked, last night’s rejection of the proposal means that we are in uncharted territory on how to move forward. The blog cannot remember a time when a sitting […]

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‘Our entire economy is in danger’ – Bush

In early August, the blog noted that politicians were beginning to recognise the seriousness of the economic situation. First, China’s finance minister Liu He warned that ‘an economic restructuring was inevitable’. Then the UK’s finance minister said the ‘global economy was at a 60-year low’, and France’s Prime Minister added that the world was facing […]

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5 key questions about the US bailout

The proposal now before Congress to authorise the spending of $700bn to bail out Wall Street contains just 849 words. It avoids the need to go into further detail via its suggestion that the Treasury Secretary should simply have unlimited authority to act as he ‘deems necessary’. But 5 key questions are bound to be […]

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‘The biggest bailout in US history’

Does the US Treasury read the blog? Just hours after the chart below was posted, rumours began to circulate of a major government initiative to try and stabilise financial markets.

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US$5 trillion

Last September, I wrote to the Financial Times on the subject of the US sub-prime disaster. At a time when many banking commentators were trying to minimise the problems, I suggested that ‘a “buyer of last resort”, such as the Federal government, would probably need to emerge if this situation is to be stabilised’. Yesterday, […]

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High inflation, or global downturn?

Central bankers had it easy over the past decade. Now they are going to have to earn their money. Inflation is rising rapidly, and growth rates are falling. But unfortunately, as I first noted back in March, they still seem to have differing ideas about what policies will best counter these twin challenges.

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US chemical imports face ‘green’ border tax

The US Congress is currently close to finalising a Bill that would aim to tackle climate change. This follows the EU model by establishing a carbon price via a cap-and-trade system, and is very welcome news. However, there is a sting in the tail, as currently drafted. For it also calls for a border tax […]

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Every mania is based on an illusion

I first wrote about the subprime crisis two months ago, as it began to be noticed in the press. Housing represents an important source of chemicals demand, and so it seemed to have potentially major implications for the chemical industry. Since then, it has become clear that the crisis could have far-reaching implications, if not […]

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