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In its latest Economic Outlook, the OECD gives a thumbs-up to Donald Trump’s plans (if that is what they are)  to enact a large fiscal stimulus and increase infrastructure spending Martin Sandbu FT 30 November 2016

Bringing to a close the worst period for the housing market since the Great Depression. zerohedge 29 November 2016

  François Fillon’s pole position in the race to become the next president of France owes much to the votes and enthusiasm of one of the country’s quietest and least understood political forces: the discreet bourgeoisie of its more affluent provinces. Full text Borgarklassens diskreta charm (originaltitel: Le Charme discret de la bourgeoisie) är en fransk surrealistisk, satirisk dramakomedifilm från 1972 i regi av Luis Buñuel. Youtube

Has until year-end to raise 5 billion euros of capital - seven times its current market value  Bloomberg 23 November 2016

FT editorial 23 November 2016

Tail risks wagging the dog with Wall Street fear gauge Markets, in moments of extreme stress, are prone to reset their expectations for the future  violently, rather than in a smooth and orderly manner.  Miles Johnson, FT 21 November 2016

Failure by the EU to construct a proper economic and banking union after the eurozone crisis of 2010-2012 and to impose austerity instead.  If you want to know why Angela Merkel cannot be the leader of the free world, look no further.  The German chancellor could not even lead Europe when it mattered. Wolfgang Münchau, FT 20 November 2016 About Italy at IntCom

https://www.britannica.com/list/5-of-the-worlds-most-devastating-financial-crises More at IntCom

That fantastically inflated financial bubble which has been building since January 1981 will finally implode.  And this time it will stay imploded because the monetary and fiscal branches of the state have fully exhausted their capacity to defy the fundamental laws of economics and sound finance. Contra Corner 18 November 2016

Trump’s own policies combined with the Federal Reserve’s likely response to the fiscal expansion  (higher interest rates) in itself is likely to cause the US trade deficit to balloon. The Market Monetarist, 18 November 2016

But this is the wrong question.  Unless there is a considerable shift in Eurozone politics, Greece WILL leave the Euro - eventually.  The question is when, and how. Coppola, 8 June 2016

Larmgränsen har Swedbanks bostadsrättsexperter satt vid ett sparande på 150 kronor per kvadratmeter och år. Johan Hellekant, SvD 17 november 201 6 Ska du köpa en  bostadsrätt är det nödvändigt att gå igenom föreningens årsredovisning för att se hur det står till med ekonomin. Klarar du inte att tyda årsredovisningen själv måste du be om hjälp. Maria Crofts DN 17 november 2016 Om avskrivningar i Brf hos IntCom

Martin Wolf FT 8 November 2016

In the bond sell-offs of 2013 and 2015, the difference between the nominal yield on 10-year US Treasurys and the real yield (which strips out the rate of inflation) was minimal, meaning market expectations of inflation were almost non-existent.  Today that gap is expansive. Fears about the damage wrought by inflation have propelled a flood of money into inflation protected bonds, with more than $1bn poured into the funds in the week to October 26 — the second largest weekly total on record, according to data from EPFR. FT 9 November 2016

http://davidstockmanscontracorner.com/ http://wallstreetexaminer.com/

The old joke among international macroeconomists was that the acronym IMF stood not just for the International Monetary Fund, but for “It’s Mostly Fiscal”.  It’s Mostly Fiscal is making a forceful comeback — including at the fund — which is all the more impressive for being flipped back to front.  The “new view” of fiscal policy, recently outlined in particular by White House economist Jason Furman, is that current economic ailments are largely due to excessively tight government budgets, and that the solution is more public borrowing and greater budget deficits.  That also contrasts markedly with the pre-crisis consensus for normal times, which was that macroeconomic stabilisation should be handled by monetary, not fiscal policy. This is a big change Martin Sandbu FT 7 November 2016 Davies, New fiscal theory ?

E21 6 November 2016 Yellen should re-read Friedman’s “The Role of Monetary Policy” and lay the Phillips curve to rest The Market Monetarist 

Fiscal policy is once again seen as effective in stimulating aggregate demand, especially when interest rates are constrained by the zero lower bound.  The  Keynesian multiplier is viewed as unusually high in such periods. Monetary policy is believed to be severely constrained in the case of a new recession, so fiscal policy would be the only game in town. Gavyn Davies, FT 6 November 2016

One way to view the situation is that there have been four serious diagnoses of the ills of the Global North.  They are: A Bernanke global savings-glut.  A Krugman-Blanchard return to ‘depression economics’. A Rogoffian-Minskyite crisis of overleverage and debt overhang.  A Summers secular-stagnation chronic crisis.” DeLong points out that each leads to different policy recommendations FT 4 November 2016 Stabiliseringspolitik

Cervenka SvD 3 november 2016 Ingves om 1992: Denna garanti utvidgades den 24 september när regeringen meddelade att den i en proposition till höstriksdagen ämnade föreslå en allmän, statlig garanti för samtliga svenskägda banker samt några namngivna kreditinstitut med statlig anknytning. En annan stabilitetsskapande åtgärd var likviditetsstöd från Riksbanken. Riksbanken använde en stor del, 57 miljarder som mest, av sina vlutareservtillgångar som likviditets stöd i form av insättningar bankerna. Härigenom motverkades minskningen av utländska "credit lines", så att neddragningen av valutadenominerade krediter till svenska kunder kunde ske mera utdraget i tiden, vilket reducerade kreditförlusterna. Riksbanken lämnade också likviditet till bostadsinstituten i ett läge där marknaden för dessas certifikat inte fungerade. Enligt vår uppfattning stod det finansiella systemet i Sverige inför en  kollaps  den 24 september 1992. Utländska långivare hade tappat för...

– Det har varit billigt för bankerna att finansiera svenska bolån med lån från utlandet. Skulle utlandet tappa förtroendet för Sverige, blir det svårt att förnya lånen. Då tvingas Riksbanken eller staten att träda in för att rädda bankerna på samma sätt som fallet var vid finanskrisen 1992. Louise Andrén Meiton, SvD Näringsliv 3 november 2016 1992