Economic Zugzwang is when there are no winning economic moves. Here is the diagram in chess terms. An economic recap follows. Trebuchet Whoever has to move loses. It's Bernanke's move. Major Economic Zugzwang Situations BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? where homebuilders 'can't make money by building and can't make money by not building' is yet another version of Economic Zugzwang. For more on the mothball strategy please see Caroline Baum and Paul Kasriel seem to be on board the Economic Zugzwang bandwagon even though neither used the term explicitly. Caroline has the right game though, chess. Her point of view was expressed in As we head into a recession look for more instances of Economic Zugzwang. The global economic imbalances in conjunction with excessive leverage everywhere guarantees it. The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? Ambac Financial Group Inc., struggling to avoid the crippling loss of its AAA credit rating, took out insurance on $29 billion in securities it guarantees. The world's second-biggest bond insurer agreed to transfer the risk that the securities will default to Assured Guaranty Ltd., according to a statement today. Reinsuring the debt will free up capital backing those bonds, Ambac said. Ambac guarantees $556 billion of securities and the loss of its AAA rating jeopardizes the rankings on that debt as well as threatens the New York-based company's biggest source of revenue. 'Reinsurance is a valuable, capital-efficient and shareholder-friendly tool for managing risk and capital,' Ambac Chief Executive Officer, Robert Genader said in the statement. My Comment: Reinsurance on $29 billion out of $556 billion is unlikely to do anything but waste mone...
Комментарии
Отправить комментарий