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: #17, September 2011

The Longbrake Letter
- Bill Longbrake
The mood in the U.S. is sour and anxiety is high. Has the U.S. entered a new recession or is it on the verge of doing so? This month's letter explains that an economy trying to dig out from the curse of excessive leverage is extremely fragile and its ability to absorb new negative shocks is limited. While a new recession is not inevitable, the risks of one are high. Also, this month's letter examines the housing market and concludes that further price declines are probable and further challenges face housing market participants and policymakers.

The Joint Select Committee on Deficit Reduction
- Bob Barnett
The clock has begun ticking on the Joint Committee on Deficit Reduction.
Along with the difficult issues with which it is dealing, and the strong
partisanship that permeates the government at this time, it faces simple
problems of a lack of time in which to conduct its business. Here is a
calendar that takes into account deadlines faced by the committee,
Congressional recesses, and the overhang of the presidential election.

The Basel Liquidity Framework
- Ray Natter
In this article, Ray provides background on the Basel process and then
provides a basic explanation of the liquidity provisions in the Basel
III accord.