Bad-News Good-News Joke

The Lehmann Letter © This week’s developments have been a good-news bad-news joke in reverse. The bad news hits, and then the stock market rises. Yesterday Fed Vice Chairman Donald Kohn, in a speech before the Council on Foreign Relations (, said: “To be sure, lowering interest rates to keep the economy on an even keel when adverse financial market developments occur will reduce the penalty incurred by some people who exercised poor judgment. But these people are still bearing the costs of their decisions and we should not hold the economy hostage to teach a small segment of the Continue reading

The Stock Market’s Up, But….

The Lehmann Letter © It’s 10am Pacific Time (1pm Eastern Time) and the S&P is already up 25 points and the Dow is up over 250, spurred on by interest-rate-cut hopes and falling oil prices: And that follows yesterday’s big gains. What happened to that stock-market correction and all those fears of recession? The fears are alive and well, if you look at the rest of the day’s stories. The National Association of Realtors (NAR) reported today that existing-home sales fell to just below 5 million for the first time since the post-9/11 housing boom began: (The NAR Continue reading

A Conversation with Paul Otellini

The Lehmann Letter © Yesterday evening I was fortunate to attend a public conversation with Paul Otellini, President and CEO of Intel and a former student of mine at the University of San Francisco. Mr. Otellini graduated in 1972 and I’ve been pleased to follow his career to the top of one of America’s great firms. He spoke at USF at the Invitation of USF’s Center for the Pacific Rim. The questions and conversation were wide ranging and I’d like to briefly touch upon one aspect of the discussion relevant to this blog: The future of the American economy. In Continue reading