Martin Hutchinson | TalkMarkets | Page 2
Columnist at The Bear's Lair
Martin O. Hutchinson is an investment banker with more than 25 years’ experience, Hutchinson has worked on both Wall Street and Fleet Street and is a leading expert on the international financial markets. At Creditanstalt-Bankverein, Hutchinson was a Senior Vice President in charge of the ...more

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The U.S. Long-Term Debt Rating Should Be BBB Minus
When looked at rationally and free from political pressure, the U.S. Treasury is barely an investment-grade bond issuer, whose long-term debt rating should be BBB minus.
The United Sates Is No Longer A Role Model
For decades after 1945, and especially after 1991, the United States was a role model for the world. Both, its economy and its economic management, represented an attainable model for European nations and for fast-growing emerging markets.
Back To The 50s – When Military Equipment Ruled!
Even as a participant in the derivatives market, I found new derivatives wrinkles pretty boring, however lucrative they might be. Equally in software, the latest “social media” app, however irresistible to billions of dozy consumers, leaves me cold.
Big Is Very Ugly
The one problem with AI currently is its partial domination by large organizations.
Breaking Through The Debt Ceiling
President Biden claims to believe that through the 14th Amendment, he can issue debt unilaterally, without Congressional approval.
The Productivity Death Wish
Nonfarm labor productivity in the United States dropped at an annual rate of 2.7% in the first quarter of 2023, which followed a fall of 1.6% for 2022 as a whole. Seemingly this appears coincident with the hyper-regulating Biden administration.
How To Regulate Banks
The Dodd-Frank system of U.S. bank regulation, instituted in 2010, is manifestly a disaster; it is now responsible for the second, third, and fourth largest bank collapses in U.S. history.
The Bear’s Lair: Nasty, Brutish And Long
Property is almost as unpopular among certain segments of society as is gun ownership, but it can be undermined every day by “woke” regulators and legal scamsters, because it is not given the benefit of explicit Constitutional protection.
The Strange Death Of Silicon Valley Bank
Silicon Valley Bank was at first sight a splendid 21st-century replica of the 18th-century Country Banks that fueled the Industrial Revolution.
Corporatism Is Not Capitalism
The Federal Trade Commission is proposing to ban non-compete agreements, which prevent employees from working for a competitor for an often lengthy period after their departure and are applied to some 30 million U.S. employees.
The Coming Regulatory Meltdown
When you add constraints to a complex mathematical or engineering system, at first it does not change much. Then it begins to perform less well, and then with the addition of a new constraint that may itself be unimportant, the system collapses.
Central Banks Must Play Grinch, Not Santa Claus
The core imperative for the move to fiat money and then to permanent “stimulus” policies was the urge by central banks to play Santa Claus. By lowering interest rates, they raise asset prices and make everyone feel richer.
Cash Flow Will Be King In 2023
For the last decade, cash flow has seemed irrelevant. Interest rates have been close to zero and well below the inflation rate so that loss-making companies and projects with cost or time overruns could easily raise additional capital.
Bernanke Brought Us Bankman-Fried
Where interest rates are kept artificially low, asset prices will explode upwards. In such an atmosphere, fraudsters will inevitably appear in profusion.
The 2010s Were Worse Than The 1970s
The main difference in outcomes was that the 2010s saw no significant inflation. That has now changed, and the prognosis going forward may well be worse than the hardships of the early 1980s.
Chairman Xi’s Austrian Economics
Beyond liquidation, Xi should set up a truly free capital market in China, with privately-owned banks, a currency tied to a commodity standard, and the free flow of capital at least within the Chinese domestic economy.
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