The May newsletter is ready

May 21st, 2015 by Rick Drain

Hi,

I just posted and emailed the May 2015 Capital Drain newsletter. If you’re on the direct mailing list for that, you should be receiving it now.

If you’re not yet on the list, but would like to be, send me an email.
If you just want to read the letter, follow this link: May 2015 CapDrain.

Also (I hope I won’t keep doing this) again I forgot to announce the April letter, so if you didn’t get that in the mail you can see it at: April 2015 CapDrain.

I hope you’ll enjoy them. You can sample from the past several years of newsletters on this page.

-R


How Tax Cuts Could Help

April 29th, 2015 by Rick Drain

New news from the “Isn’t Actual Data Wonderful?” department:

Pedro Nicolaci Da Costa posted on the Wall Street Journal’s Capital Markets column, saying in part:

Tax cuts are an effective way to bolster a weak economy and create jobs—as long as they are targeted at the bottom 90% of income earners.

His position is amply supported by empirical data.

The reason for this effect is simple enough: the bottom 90% of earners are most likely to spend the windfall, creating the virtuous cycle of increased demand begetting new investment in supply. It has to start with demand, though. Businesses know perfectly well that if people can’t buy, there’s no point building another factory or retail outlet.

You can read the article and follow the links to the supporting data at:

Tax Cuts Boost Jobs, Just Not When Targeted at Rich

Longsplice rope

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The December newsletter is out

December 17th, 2014 by Rick Drain

Hi,

I just posted and emailed the December 2014 Capital Drain newsletter. If you’re on the direct mailing list for that, you should be receiving it now.

If you’re not yet on the list, but would like to be, send me an email.
If you just want to read the letter, follow this link: December 2014 CapDrain.

I forgot to announce the extremely short November letter, so if you didn’t get that in the mail you can see it at: November 2014 CapDrain.

I hope you’ll enjoy them. You can sample from the past several years of newsletters on this page.

-R


Banks: It’s still not over, but nearly.

October 17th, 2014 by Rick Drain

The FDIC having to close failed banks may seem like– ok, it is– old news, but it is still happening. It’s not above-the-fold news, though, because failures now are small, few, and far between.
They closed another today, costing the FDIC insurance fund a mere round-off error of $24 million added to $90 billion total.

More interesting, until today we’d had the longest gap, 12 weeks, without a failure since 2008. That’s worth noting as good news.

FDICBankClosuresChart2014-10-17

FDIC Bank closures, 2007 to October 17, 2014