Showing posts from May, 2012

Gary Shilling: Making the Case for Recession

Larry Kudlow interviews Gary Shilling on CNBC's Kudlow and Company
May 15, 2012

Kudlow: Let's switch to an entirely different discussion. I know there is a lot of optimism about stocks and jobs and the economy. Our next guest, however, is going to rain on this parade. Joining me is my great friend Gary Shilling, President of A. Gary Shilling & Company and author of The Age of Deleveraging. You still are in the recession camp?

Shilling: Let me say before I answer it, the reason the money supply is going up is because people are switching their funds into forms that count as M2 and out of other forms and they are doing it for safety -- they want FDIC insurance. We've studied that in detail.

Kudlow: So it's deflationary

Shilling: It's deflationary, it's not inflationary. It's safety. It's not money that is waiting to be spent, to be invested. It's quit the opposite.

Kudlow: I don't necessarily disagree with all this. But, C&I loans are ris…

Johns Hopkins Lecture on Black Box Casino: Pricing the Key Causes of the Financial Crisis of 2008

Class Lecture
Carey School of Business
Johns Hopkins University
Washington, D.C. Campus

April 17, 2012

By Robert Stowe England

For most Americans, a thick fog still shrouds the origins of the financial crisis.

This is true despite the fact three years have past since the crisis burst on the scene in September 08 with the bankruptcy of Lehman Brothers.

Finding the answer to what went wrong is what compelled me to write Black Box Casino. In the end, it was a detective story where even a list of important actors could run into the hundreds.

At the center of origins of the crisis is a single industry – the mortgage industry.

As senior writer for Mortgage Banking magazine since 1988, I have reported on the vast changes sweeping through the industry for more than two decades.

We’ve come a long way.

In the early 1990s, the mortgage industry was disciplined by the free market. It was flexible and innovative. New loan products would appear and market players would experiment with flexible und…