John Carney, CNBC.com’s Posts

The idea that rising interest rates lead to a decline in investment spending is at the core of a lot of traditional investment theory, monetary policy and fears about what will happen when the Federal Reserve withdraws its accommodative monetary stance. And it may just be wrong. A new working paper by two Federal Reserve economists …

Looking back now, the financial crisis and the deep recession that followed still appear mysterious. How was it that an uptick in mortgage defaults led to a situation where 12 of the 13 most important financial institutions in the U.S. were near failure, where millions of American were thrown out of their jobs, and from …

When the Federal Reserve unveiled the bond buying programs everyone now knows as quantitative easing, there were two complaints whose prominence was outmatched only by their erroneous assertions. The first was that the Fed was printing money that would quickly debase the currency and lead to high inflation. The second, which followed a little while later, was …

Let’s say you are Lloyd Blankfein, the CEO of Goldman Sachs. You’re sitting in your office in a tower shooting up from lower Manhattan. From this floor you can literally look down on nearly every building around you. You are scraping skies they cannot reach. The only thing taller is the Freedom Tower. On your desk, …

New home affordability data is a strong confirmation that the housing market is once again in a bubble.