Reggie Middleton's Boom Bust Blog

Okay, it's time to light the fuse under the political stick of dynamite. Who do you favor in November and why? From war to economics, the two presidential candidates are as different as black and white (seriously, no pun intended).

From the NY Times :

Many Americans know that there are characteristic policy differences between the two parties. But few are aware of two important facts about the post-World War II era, both of which are brilliantly delineated in a new book, “Unequal Democracy,” by Larry M. Bartels, a professor of political science at Princeton. Understanding them might help voters see what could be at stake, economically speaking, in November.

I call the first fact the Great Partisan Growth Divide. Simply put, the United States economy has grown faster, on average, under Democratic presidents than under Republicans.

The stark contrast between the whiz-bang Clinton years and the dreary Bush years is familiar because it is so recent. But while it is extreme, it is not atypical. Data for the whole period from 1948 to 2007, during which Republicans occupied the White House for 34 years and Democrats for 26, show average annual growth of real gross national product of 1.64 percent per capita under Republican presidents versus 2.78 percent under Democrats.

That 1.14-point difference, if maintained for eight years, would yield 9.33 percent more income per person, which is a lot more than almost anyone can expect from a tax cut.

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From the Wall Street Journal:

Regulators shut down Silver State Bank, the latest in a series of bank failures and one that could ripple through the presidential campaign.

 

Until recently, the son of Republican nominee Sen. McCain sat on Silver State's board and was a member of its three-person audit committee, which was responsible for overseeing the company's financial condition. Andrew McCain left the Henderson, Nev., bank July 26 after five months on the board, citing "personal reasons." He is Sen. McCain's adopted son from his first marriage.

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Heard on the street...

This is unconfirmed, but word is that Ameribank should be one of the next banks to be siezed... the Feds sent out term sheets this week for deposit purchase. If anyone can confirm this, feel free to reach out to me.

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This is my proprietary Z score analysis of USG Corp. I will be posting a summary and full forensic report on this company for subscribers very soon. The debt rating is a rough draft of my own proprietary system. It needs some work, but I included it anyway.