I'm attending the International Economic Forum of the Americas in Montreal this week (that's a mouthful). So far, not many surprises, as policymakers and think-tank thinkers gather to discuss what the heck's going on in the global economy and what should be done about it.

Oh, jeez. Something else to consider. Public health issues.

Lehman Brothers paid out bonuses of $5.7 billion (U.S.) to its employees in 2007. Nine months later, the Wall Street investment dealer goes bankrupt. There is something wrong with this picture.

Some analysts say a big-picture trend presently unfolding involves hedge funds and other players unwinding bets on commodities/foreign currencies and plowing the proceeds into U.S. financial and other stocks. They are doing this for valuation reasons and as a haven against weakening economies overseas.

“The risk of a full scale run on U.S. banks … is all too real,” states Nandu Narayanan in his July commentary. Narayanan has a PhD in finance from the Massachusetts Institute of Technology and is a hedge fund manager whose fund, CI Global Opportunities Fund, has gained over 75 ...

Hedge fund manager Goodwood Inc., an activist value investor, confirms forced selling in the stock market. “We believe there has been a significant amount of selling recently in some of our core names by other institutions that have been experiencing redemptions,” they note in their latest Monthly Commentary.

Well, it wasn’t nice knowing you Mr. Stagflation. With inflation on the way out, Mr. Recession will be replacing you. He’ll still be rather unappealing but at least the central banks will have room to ease interest rates -- then we’ll eventually get the ever popular Mr. Rebound.

The imperative to shore up the banking system explains why predictions of Fed rate hikes may be off the mark – even if inflation continues to rise. Financial stability is a higher priority, so rates need to be held low to allow hard-hit banks to recapitalize (as noted in my ...

U.S. banks are finding it difficult to raise capital and avoid a drastic restriction in lending, fanning fears of systemic meltdown and a plunge into a severe economic downturn. But maybe things aren’t all that bad: the Federal Reserve’s 2% discount rate is another avenue by which the banks ...

Nandu Narayanan, chief investment officer at Trident Investment Management, argues in his latest commentary that Citigroup is the “poster child” for what has gone awry in the U.S. financial sector (Mr. Narayanan’s hedge funds are doing quite well this year). What follows is a summary of the relevant sections.