A list of all of Doc Werlin’s writings pertaining to economics.
I began writing columns for the Herald Tribune in March 2008. My second article, entitled "To Bear Stearns' shareholders, JPMorgan CEO is no Goldilocks," discussed JPMorgan's proposed acquisition of Bear Stearns at a severely [...]
It has Nothing to do with the Stars "Since the crisis, one by one, the stars came into alignment, and it was only a matter of time before you had a week like we [...]
"Do you know the only thing that gives me pleasure? It's to see my dividends coming in." - John D. Rockefeller While I like to think my life is not as narrowly focused as [...]
In a December article entitled "Going Nowhere Fast," The Economist reported that the S&P 500 has outperformed its hedge-fund rivals for 10 straight years, with the exception of 2008, when both suffered grievously. "A [...]
Whatever the outcome of the upcoming political machinations regarding the looming fiscal cliff, one thing is certain: The tax code will change. One of the changes being debated is the tax rate on dividends, [...]
A Dec. 4 Wall Street Journal article, "Top U.S. Firms are Cash-Rich Abroad, Cash-Poor at Home," discussed the liquidity problem confronting many of our major corporations. At a time when U.S. companies hold near-record [...]
Unless something is done between now and then, taxes are slated to go up across the board beginning early next year. Altogether, higher taxes -- the result of the dreaded "fiscal cliff" -- will [...]
"The last thing the world economy needs right now is the threat of rising protectionism" - World Trade Organization Director-General Paul Lamy Trade has fueled economic growth over the centuries, from the gold trade [...]
Economists debate whether the Federal Reserve has the tools to fix today's unemployment problems. They express frustration that, after four years of super-low interest rates and the Fed's extraordinary money-pumping, we still suffer from [...]
In August 2011, after months of wrangling over the deficit ceiling, political leaders from both parties decided to postpone solving our fiscal problems until January 2013. To resolve the impasse over the budget ceiling, [...]
"We are facing a fiscal train wreck at the end of this year. It is time to move off of fixed positions." - Sen. Kent Conrad, Democratic chairman of the Senate Budget Committee Congress [...]
On June 28, the Bank for International Settlements, an intergovernmental organization of central banks, in its annual report warned central banks against keeping interest rates low for too long. BIS, a kind of central [...]
"During the 2008 financial crisis, the bulk of the government's $700 billion Troubled Asset Relief Program went to aid larger institutions, leaving many smaller banks vulnerable." - Nobel Prize-winning economist Joseph Stiglitz, speaking to [...]
Many Americans think of Canada as our 51st state. But recent events highlight Canada's desire to avoid a satellite status and, instead, to expand its commercial relationships with China. Canadians, led by Prime Minister [...]
In prescribing a cure for Europe's economic woes, we might remember the lyrics of the song "A Spoonful of Sugar Helps the Medicine Go Down." Bob Sherman, the lyricist for "Mary Poppins," said he [...]
Billionaire investor Warren Buffett and BlackRock CEO Larry Fink recently provided a strong rationale for going all-in on stocks. Buffett wrote in his 2012 annual letter that he believed equities would, over time, provide [...]
Japan has lost its exporting magic. Japan's Ministry of Finance reported its first annual trade deficit since 1980: approximately $32 billion. A trade deficit occurs when a country consumes more (imports) than it produces [...]
"I don't agree with him on everything, but he is right about the out-of- control and unaccountable Federal Reserve." - Sen. Jim DeMint R-SC, referring to Rep. Ron Paul The Republican Party has a [...]
When I initially considered joining the board of directors of a publicly traded company, my first thoughts were the images conveyed by the film industry. I pictured myself sitting with nicely dressed people around [...]
“The boom, not the slump, is the right time for austerity at the Treasury.” -John Maynard Keynes, 1937 In a New York Times editorial Keynes Was Right Paul Krugman agreed with Keynes. Krugman endorsed [...]
"We will do what is needed to maintain price stability." - Mario Draghi, president, European Central Bank, March 13, Vienna The European Central Bank recently indicated its willingness to take dramatic actions at its [...]
"The U.S. decision to delay approval of the Keystone XL pipeline is a catastrophic cop-out by the Obama administration." -- David Wilkins, former U.S. ambassador to Canada under President George W. Bush On Oct. [...]
MF Global Holdings' bankruptcy underscores just how easily Europe's problems can reverberate throughout the financial system. MF Global is the biggest failure by a securities firm since Lehman Brothers Holdings Inc. filed for Chapter [...]
"We put our clients' interests first." - Michael Cozene, senior vice president, GenSpring Family Office, Sarasota This summer, Soros Fund Management, the investment operation of hedge-fund billionaire George Soros, decided to return the money [...]
"The top U.S. financial institutions have become zombie banks that will need a decade to adjust their businesses to the new realities in the industry." - Meredith Whitney, CEO of Meredith Whitney Advisory Group, [...]
For those of us who own equities, the last five weeks have been devastating. Market losses have put us into red territory for 2011 and even wiped out much of our profits in 2010. [...]
On July 26, the Pew Research Center released a study, "Wealth Gaps Rise to Record Highs Between Whites, Blacks and Hispanics." Pew reported that the wealth of different racial groups in the United States [...]
And somewhere men are laughing, and little children shout; But there is no joy in Mudville - mighty Casey has struck out. - “Casey at the Bat,” by Ernest L. Thayer Washington, like Mudville, [...]
Near the end of the HBO movie "Too Big to Fail," Federal Reserve Chairman Ben Bernanke is shown stating his rationale for the government's bailout of Wall Street firms despite their greed and their [...]
Henry Kissinger, in his recent book, "On China," wrote that Chinese Premier Zhou Enlai said in 1971 of the U.S.-China relationship: "This will shake the world." Kissinger responded to Zhou's statement by asking "whether [...]
"If at first you don't succeed, try, try again. Then quit. There's no point in being a damn fool about it." -W.C. Fields Fields could have meant this advice for Federal Reserve Chairman Ben [...]
"There are risks and costs to action. But they are far less than the long-range risks of comfortable inaction." - John F. Kennedy Those of us with more than a few gray hairs can [...]
"We think fundamentally that this transaction is so anti-competitive that there's no way to fix it that doesn't result in harm to consumers and the economy." - Charles McKee, Vice President of Government Affairs, [...]
For those who can remember the oil shocks of the 1970s, it all seems eerily familiar. During that decade, the Organization of the Petroleum Exporting Countries employed stratagems to increase prices from about $3 [...]
"The United States faces daunting economic and budgetary challenges." - Congressional Budget Director Douglas Elmendorf In mythology, Troy was destroyed because its inhabitants failed to heed the warnings of Cassandra against bringing a wooden [...]
In 2008, Mohamed El-Erian, CEO and co-chief investment officer of Pacific Investment Management Co., coined the term "the new normal." El-Erian used the term to describe the post-financial crisis facing investors, predicting a world [...]
