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: #15, July 2011

The Longbrake Letter
- Bill Longbrake
The outlook has worsened, not brightened, over the last month. The June employment report was simply awful in every respect. GDP growth continues to disappoint and prospects for improvement are doubtful. In this month's letter I describe the concept of GDP growth “stall speed” and provide an update on expected GDP growth. Next I revisit last month's topic – “Where Are the Jobs?” – and summarize analyses which indicate that the primary engine of new job creation, namely new business formation, is impaired. This month's letter concludes with a detailed discussion of the European sovereign debt crisis.

Does Dodd-Frank End Too Big to Fail?
- Ray Natter
One of the primary purposes of the Dodd-Frank Act is to end the doctrine of "Too Big To Fail." This article reviews the TBTF doctrine and argues that economic realities and not statutory language will govern the response to the next major failure.

The QM/QRM Impact Problems
- Robert Barnett
Both the proposed QM rule and the Proposed QRM rule will have a disparate impact on LMI and minority borrowers. If substantial changes are made, they will have less of an impact, but at the same time, those changes will most likely increase the chances that there will be more defaults on payments of mortgage loans. But it is not the agencies' action that is the cause - it is the Act itself that creates the problem with its attempt to prevent a repeat of the excesses.