Some applications - 2
International Monetary Research Ltd. carries commentary on the world's leading economies, namely the USA, the Eurozone, Japan, China and the UK. From time to time there is also discussion of the economic and financial situation in particular members of the Eurozone and smaller countries, as well as wide-ranging global "think pieces".
Tim Congdon has had a remarkable record of identifying major macroeconomic trends, and anticipating their implications for financial markets and corporate strategy. In an article in The Times on 2nd October 2008 he argued that banks' low capital/asset ratios made them highly vulnerable to loan losses. The message was that the US Congress had to accept that government help for the banks, broadly of the kind proposed by Treasury Secretary Paulson, was necessary.
"Given the harsh arithmetic of a modern banking system, Mr. Paulson must try, try and try again to get a package through the American political system. If Congress remains pig-headed, a big cut in interest rates, possibly to zero, could be needed to rescue the banking systems and economic prosperity of the leading industrial countries."
Tim Congdon's article on 'Harsh arithmetic behind the banking crisis' in The Times of 2nd October 2008
The USA's pivotal Fed funds rate - 1 1/2 % in early October when the article was written - had dropped to zero by the end of November.