James Pethokoukis

Can the US keep financing its debt?

October 30, 2009

The great Andy Busch of BMO Capital Markets sees some problems down the road:

It’s called carry, but not like currency carry. As most know, banks can fund themselves at 0.1%-0.25% as the Federal Reserve keeps Fed Funds at 0.0%-0.25%. Then banks are incentivized to find the safest, highest return they can with this cash.

Barney Frank: Let’s pack the Fed with doves

October 30, 2009

Here is Barney Frank at yesterday’s House Financial Services hearing:

I had a study done. Ninety percent of Federal Open Market Committee [dissents] are from regional bank presidents and 90 percent of the 90 percent are for higher interest rates.

Economic fears drive Pelosi’s healthcare push

October 30, 2009

First you have to realize that Mark Zandi has become the de facto chief economist for congressional Democrats. Here is a bit from his testimony yesterday to the Joint Economic Committee: