A list of all of Doc Werlin’s writings pertaining to economics.
Over the past few months, the investment community has begun focusing on the steps the Federal Reserve might take to reduce its current balance sheet, which now amounts to some $4.3 trillion. Because the [...]
The Federal Reserve is expected to raise interest rates Wednesday by 25 basis points, to 1 percent, and the U.S. central bank has indicated it plans to raise rates aggressively. Most economists expect the [...]
Last week, the Standard & Poor’s stock index increased to a record high market capitalization above $20 trillion. This compares with $5.9 trillion when the market hit a low on March 9, 2009. It [...]
During his campaign, Donald Trump said his policies would grow the economy by 4 percent per year and increase employment by 25 million over the next decade. While these are laudable goals, they also [...]
“Pursuing protection is just like locking oneself in a dark room. While wind and rain may be kept outside, so are light and air.” — Xi Jinping, Chinese president During his campaign, President Donald [...]
“Be fearful when others are greedy and greedy when others are fearful.” —Warren Buffett American consumers are more confident about the economy and their financial future than they have been in years. As 2016 [...]
In the largest bankruptcy of a U.S. state or territory, Puerto Rico Gov. Ricardo Rossello requested court protection for his U.S. commonwealth to resolve a large number of lawsuits from creditors. The Puerto Rico Financial [...]
I feel very fortunate to possess a collection of cartoons from Puck, the humor magazine that ceased publication in 1918. My favorite is a 1901 cartoon by famed illustrator Joseph Keppler depicting industrialist J.P. [...]
Is the world in danger of drowning in debt? The International Monetary Fund this month issued a report highlighting its concerns about worldwide debt, which it said totals some $152 trillion. “The period of [...]
On Friday, Federal Reserve Chairwoman Janet Yellen told global monetary policymakers, “I believe the case for an increase in the federal funds rate has strengthened in recent months.” She implied that internal forecasts have [...]
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” — Warren Buffett Warren Buffett, a legendary investor with a pristine [...]
Today’s Wall Street Journal had an article, which focused on John Bogle, founder of Vanguard—a money management company that focuses on index funds. The article contained two ideas that I wish to share: Bogle [...]
In today’s Wall Street Journal, Jason Zweig discussed the fortieth anniversary of index mutual funds—the Vanguard 500 Index Fund. The initial public offering, $11.3 million, was a major disappointment to Vanguard’s founder, John C. [...]
Unfunded pension liabilities of cities and states have doubled as their returns have fallen over the past decade and are now approaching $1 trillion. The problem has escalated a national debate about whether these [...]
On Wednesday, the Federal Reserve announced that it would not only keep its benchmark interest rates unchanged but might only raise rates once over the next two years. The Fed policymakers’ altered rate outlook [...]
On Thursday, the Organization of the Petroleum Exporting Nations ministers failed to agree on a new production ceiling. The cartel that controls over a third of the world’s oil has been pumping all out [...]
The U.S. Labor Department on May 6 reported that our economy added the fewest number of jobs in seven months, 160,000. So far in 2016, employment gains have averaged 192,000 per month. This is [...]
For years I have admired Warren Buffett. Moreover, his eternal optimism is contagious. That is, it is hard to listen to Warren without buying America. Nothing seems to deter his belief that America is [...]
MetLife, the insurance giant that in 1985 secured the rights to use Snoopy in its company logo, has won a major victory, allowing it to avoid more strict federal scrutiny. Despite being the nation’s [...]
Six years after the government bailed out U.S. banks and auto companies, Chinese regulators are coming up with strategies to clean up their own banks’ bad debts, primarily caused by loans to state-owned enterprises [...]
“Negative interest rates are spreading like the Zika virus.” — Bill Gross, co-founder of PIMCO Bill Gross, a legendary fixed-income investor, recently expressed his alarm in his monthly newsletter over the increased use of [...]
On Thursday, Caterpillar, the world’s largest construction and mining equipment maker, warned that 2016 would be a grim year for it. It predicted that its revenues would decline for a fourth straight year — [...]
As 2015 ended, the International Monetary Fund's managing director, Christine Lagarde, lowered her forecast for 2016 in a guest column published by the German financial newspaper Handelsblatt.Earlier, she had said at a Brookings Institution event [...]
Several years ago, news organizations described the inventors of new financial instruments as “financial engineers.” Since then, the Great Recession has taught us that a financial Mr. Hyde, not a Dr. Jekyll, conceived some of [...]
“The junk bond market was a keg of dynamite that sooner or later will blow up” — Carl Icahn, on CNBC On Dec. 12, Carl Icahn warned that a lack of liquidity could cause [...]
Pfizer has approved a deal to buy rival drugmaker Allergan for $160 billion, making it the largest pharmaceutical merger ever. Pfizer CEO Ian Read has repeatedly stressed his desire to move his New York-based [...]
The Labor Department last week reported the strongest jump in payrolls this year, some 271,000 in October, the fastest rate of wage increases since 2009. Unemployment fell to 5 percent from 5.1 percent. Average [...]
On Friday, the People’s Bank of China took several major steps to stimulate that country’s economy after it slowed to its lowest level since the 2008 global financial crisis. The bank: Cut its benchmark [...]
The U.S. Labor Department recently released the disturbing news that our job growth for non-farm payrolls only rose 142,000 in September. Adding to the woes, labor gains in July and August were revised downward. [...]
Global mergers and acquisitions could set a record this year of close to $4.6 trillion, according to data provider Dealogic. This would exceed the $4.3 trillion reached in 2007, the previous record year for [...]
China’s recent devaluation of its currency, the yuan, highlights Beijing’s attempt to reverse the country’s domestic economic slowdown. Until now, the country’s stimulus efforts focused solely on its domestic market: Beijing encouraged its banks [...]
Investors are fleeing commodities amid mounting worries about the slowdown in global growth and the significant price declines in commodities. The World Bank, in its latest Commodity Markets Outlook, predicts that commodity prices will [...]
The communist Chinese government has now tasted the bitter medicine of the downside volatility that accompanies capitalism. That nation’s stock market has sold off $3 trillion — some 30 percent during the past four [...]
In recent weeks, global interest rates have risen dramatically because of the improving economies of many of the largest developing countries. Interest rate increases in Europe and America have recently been following each other [...]
Investors and savers -- those who buy bonds and put money in bank deposits -- are paying banks to hold onto and use their money. Mark Kiesel, chief investment officer for Global Credit at [...]
Merger and acquisition volume could reach $4 trillion globally this year, trailing only 2007's record. This time, America is much more active in deal making than Europe. The weaker countries in Europe are holding [...]
