We don’t look back at history as often as we should. As an amateur student of history, with a focus on finance and economics, I want to start looking back at what was important to us a year ago. In many cases, what we thought was important no longer matters. Hopefully, in my weeding through news stories, I was able to pick out the things that were. Here’s a look back at the Weakonomics coverage of the news last March and April.
Gold: Last year I talked about a “gilded bubble”. I likened it to the oil bubble of 2008. The conversation of a gold bubble was driven by it’s recent move over into the $1000s. For the most part, my call for a bubble was off. Though prices increased, today it’s only about 10% more than it was then. I’d said it would go to $1500 and then pop to below $1000. So either investors realized $1500 would be too much before we got there, or something else happened.
Geither: Last year I called for Tim Geithner’s resignation for his weak leadership in a position that requires strength. He’s doing better now, but his roles in AIG, Lehman, and TARP in general will still leave him with a questionable future. We’ll keep our eyes on this story.
Depression: I said we weren’t in a depression, we’re not even in a recession right now. Things could turn sour, but they aren’t yet.
Real Estate: To prop up real estate prices the Obama Administration introduced a plan to save the housing market. That was last year and now they have a new plan this year. I wonder what 2011 will bring us when this doesn’t work.
Printing Money: The federal government has “printed” money to get us out this recession. However if a recovery starts happening too quickly we could face runaway inflation. Inflation may be the big story of 2011, or it might have to wait until 2013.
Swine Flu: Boy that sure was an epidemic.
TARP: We were all wondering if the banks would pay back their TARP money. And if they did, what would the government do with it? Obama has proposed using some of the money for other programs and the rest to pay down the deficit a smidgen. Nothing could make me happier. Also, all the major banks except Citi have paid back their borrowings and Citi has done almost half of the $45 billion they borrowed.
The good news is that of the problems from a year ago, 5 or so are almost non-issues today. Inflation and housing are still problems that must be dealt with. Of the big news lately, what will be important next year and what won’t matter? I’m guessing the Greece story is going to be the catalyst of more European issues that will be contained within the continent. Inflation will probably still be big. But I can say with almost complete certainty that the healthcare bill that recently passed will be long forgotten by this time next year.
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
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