Tag Archive for Bernard Connolly

When Prices Fall- Frederick J. Sheehan

“Real and Illusory Credit” bridged the destruction of phony, 1920s, Federal-Reserve wampum to Bernard Connolly’s evaluation of today’s deadly path. The aftermath of the twenties, as described in David A. Stockman’s The Great Deformation: The Corruption of Capitalism in America, crippled capital spending. Plant and equipment investment tumbled by nearly 80 percent between 1929 and 1933. Inventories were liquidated. There were no buyers. Employment and wages collapsed.

Real and Illusory Credit – Frederick J. Sheehan

 “When Ro-Ro goes No-No” expounded upon the ultimate futility of conjuring illusory wealth. Bernard Connolly’s analysis, “Rethinking the Rogoff-Reinhoff Thesis,” made the case. Connolly wrote This Time is Different: Eight Centuries of Financial Folly, “is largely an exercise in measurement rather than theory (while many of the data in the book are new, little or…

When Ro-Ro Goes No-No – Frederick J. Sheehan

            A book finds favor when public opinion is willing to accept its proposition. This Time is Different: Eight Centuries of Financial Folly (2009) by Carmen Reinhart and Ken Rogoff funneled the debate of whether post-2008-crisis governments should increase spending (“fiscal stimulus”) or cut it (“austerity”). The media’s interpretative abilities further…

A Quarrel in a Far-Away Country between People of Whom We Know Nothing – Frederick J. Sheehan

Even for those living on a distant continent, the confiscation of state-guaranteed bank deposits in Cyprus is a reminder. (At this stage, it is not clear the Eurocrats will succeed.) Governments and central-banks blew their capital to save a financial Ouija board – not system – in 2008. Former Federal Reserve Chairman Paul Volcker reminded…