A list of all of Doc Werlin’s writings pertaining to economics.
Something weird is happening in Europe: negative interest rates. Some $2 trillion, about 16 percent of the world's government bonds, now offer negative yields, according to John Apruzzese, partner and chief investment officer at Evercore [...]
It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. - Adam Smith, Wealth of Nations, 1776 [...]
"The road to hell is paved with good intentions" Well meaning efforts by the Swiss National Bank have backfired, sending shock waves through international markets. In 2011, the Swiss central bank took dramatic steps [...]
America enters 2015 with more momentum than it has had since 2007. Hopefully, our fire power can pull the rest of the world out of its doldrums. Despite this week's plunge in the stock [...]
An article in the New York Times entitled "The goal of 2 percent inflation, rethought" shows the improbable evolution of this important economic target. According to the piece by Times senior economics correspondent Neil [...]
In recent weeks, Saudi Arabia, OPEC's largest oil producer, took two extraordinary steps to maintain its market share. These measures have helped triggered a near free-fall in the oil market, with prices hitting their [...]
Tumbling gas prices make me feel like dancing when I pull into a filling station. Gas prices in Sarasota now hover near nationwide levels below $3 a gallon, according to AAA. Prices of oil, [...]
The central banks of Europe and the U.S. are on different paths: The U.S. Federal Reserve is ending its quantitative easing program because it worked; the European Central Bank is considering starting such a [...]
Mario Draghi, the European Central Bank president, remains a key player in efforts to save the Eurozone. Two years ago, he halted a Eurozone crisis by loosening the interest-rate logjam that threatened beleaguered countries [...]
"The best is the enemy of the good."- Voltaire France and the U.S.-based General Electric Co. have become unlikely business pals. On June 23, after a nearly two month's battle, the French government and [...]
"The world must act to contain the risk of another devastating housing crash." -- Zhu Min, deputy managing director at the International Monetary Fund In the space of a few days, June 11-12, a [...]
The extraction in the U.S. of oil and natural gas from shale rock remains controversial. On the one hand, the benefits from this domestic power source are so great that they have changed the [...]
Pfizer Inc. is trying to acquire AstraZeneca for both tax and strategic reasons. First, the tax reasons: Internal Revenue Service regulations have made it difficult for companies to leave the U.S. to go to [...]
Recently, activist investors have performed alchemy, burnishing their base image into one with a golden tint. It is beneficial and informative when these hedge-fund managers -- notably David Einhorn of Greenlight Capital, Dan Loeb [...]
The popularity of dividend-paying equities has grown tremendously as investors looking for ways to generate meaningful income in today's low-interest world. But Mebane Faber, a portfolio manager at Cambria Investment Management, argues that dividend [...]
"There cannot be a single currency without economic convergence, or the euro zone will explode." - Mario Draghi, European Central Bank president, Dec. 1 Last week, Mario Draghi, president of the European Central Bank, [...]
We Need to Heed Warnings of power grid's vulnerability "The power grid now faces a range of threats it was never designed to survive." - Paul Stockton, former assistant secretary of defense We can [...]
Some six years after the 2008 financial meltdown, we are still learning important information about the mindset of policymakers during that anguished era. Recently released transcripts of the central banks' policy meetings in 2008 [...]
"Those who do not remember the past are condemned to repeat it." - George Santayana To put in perspective the importance of the Keystone Pipeline, we need to remember the shock the U.S. suffered [...]
"The future ain't what it used to be."- Yogi Berra It has always been difficult for the retail industry to keep its customer base because of constantly changing consumer preferences, rapid commoditization and low [...]
"J. P. Morgan as an institution failed, and failed miserably." - Manhattan U.S. Attorney Preet Bharara J.P. Morgan, fraudster Bernard Madoff's primary banker, agreed to pay more than $2 billion to avoid criminal charges [...]
Ernest Werlin's column appears today instead of Thursday because we won't have a business section Thursday. As an investment, gold lost its glitter in 2013. Year-to date, gold is down 28 percent, to around [...]
Last Friday, I met with a few friends to celebrate the holidays and discuss our thoughts about economic policy decisions made by the Federal Reserve and our Congress. My friends expressed their concerns about [...]
Philadelphia Federal Reserve president Charles Plosser thinks the Fed has gone too far. Plosser, in a Nov. 23 speech before the libertarian think tank the Cato Institute, proposed four limits on the central bank [...]
Fannie Mae and Freddie Mac, with a $39 billion payment to the U.S. Treasury by the end of the year, will be close to repaying the government almost the entire amount that was injected [...]
The media attention on the upcoming initial public offering of Twitter obscures a much bigger and possibly worrisome economic phenomenon: junk bonds. Global high-yield-bond issuance dwarfs new equity offerings. The Twitter initial public offering [...]
"More needs to be done to strengthen the recovery. Too many Americans still can't find a job and worry how they'll pay their bills and provide for their family." - Janet Yellen, nominee to [...]
Five years after the Sept. 15, 2008, collapse of Lehman Brothers and the paralysis of the global financial system, it is important to recognize that some of the causes of that calamity remain unsolved. [...]
We now have a classic case of being careful about what you wish for. When the Federal Reserve was ramping up its purchases of U.S. Treasury bonds to support the American economy, many overseas [...]
I was as surprised as the companies and everyone else seemed to be when the U.S. Justice Department filed a lawsuit Aug. 13 seeking to block the proposed $11 billion merger between US Airways [...]
One of the benefits of my column for the Herald- Tribune has been dramatically increasing my friendships. When I first started writing for our newspaper in 2008, I was a newcomer to Sarasota. The [...]
My story of the financial crisis and recovery might sound familiar to you. According to the Federal Reserve, the net worth of Americans is now the highest in history. We have rebuilt much of [...]
After 40 years as an investment banker, an incident on Tuesday brought into focus many of my basic beliefs in what makes for a sound investment strategy. On Tuesday, the Dow briefly plunged more [...]
"May you live in interesting times." Living in interesting times is a curse. Uninteresting times of tranquility are more life-enhancing than are interesting chaos. Amid sluggish global growth, many central banks, such as the [...]
On Nov. 3, 2009, legendary investor Warren Buffett made his biggest bet yet. His company, Berkshire Hathaway, agreed to buy Burlington Northern Santa Fe Corp., one of seven major American railroads, for $44 billion. [...]
"Those who cannot remember the past are condemned to repeat it." - George Santayana On March 14, a 301-page, bipartisan U.S. Senate report provided damning evidence of breakdowns at the nation's largest bank, JP [...]
