Editor's Note: This is a monthly publication on economic trends and financial policy issues. In this publication you can read "The Longbrake Letter", an analysis of economic trends and conditions written by Bill Longbrake, as well as commentary on financial regulation and policy written by members of the law firm Barnett, Sivon & Natter, P.C., a Washington, DC based law firm that specializes in financial services law.

ISSUE: #09, January 2011

The Longbrake Letter
- Bill Longbrake
Optimism is rising, based on stronger economic data reports, but also on hope, which could be self-fulfilling, if consumers loosen their purse strings and increase spending. But it is not yet certain whether growth can be sustained without ongoing monetary and fiscal stimulus. In this month's letter, Bill Longbrake reviews and examines prospects for GDP growth, employment, housing, inflation and interest rates.

Recess Appointments
-Ray Natter
With a number of significant positions either vacant or becoming vacant in the near future, the President may decide to use his authority to make recess appointments for key financial regulators. This paper provides a short explanation of the process and the statutory limitations that have been placed on recess appointees.

The TBA Market and Risk Retention
-Bob Barnett
As the regulators make decisions on risk retention, and in particular on the definition of Qualified Residential Mortgages, they must keep in mind the impact those decisions will have on the To Be Announced market for mortgage-backed securities.

This Month's Bubbles?
- Bob Barnett
It's hard to tell what will be a problem bubble. Here are some possibilities we noticed this month.