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: #36, April 2013

The Longbrake Letter
- Bill Longbrake
Although U.S. GDP growth will rebound sharply in the
first quarter, higher taxes and lower spending will slow growth in the
second and third quarters. In this month's letter Bill Longbrake
discusses U.S. economic developments and probable trends. In addition,
he critiques David Stockman's new book, explores why the European
Project is destined to fail and discusses the ramifications and
potential consequences of Japan's aggressive monetary reflation and
economic stimulus programs. He also includes additional thoughts about
why he expects future potential U.S. economic growth to fall short of

The Stress Tests
-Bob Barnett
Stress tests are useful as a good rough measure of the capital strength
of an institution. But they are in their infancy and can be expected to
change as time passes, since issues being raised about them appear to be
reasonable, and alternatives need to be addressed.

Furloughed Federal Employees
- Raymond Natter
Fights between the President and the Congress over the control of the
budget and spending have occurred since the earliest days of our
Republic. As a result of these disputes, in the late 19th Century
Congress made it a crime to volunteer to perform Government service
without compensation, and as a result it is illegal for furloughed
Federal employees to offer to work for free during their furlough

A Brief Note on Why Glass-Steagall Was Repealed
- Bob Barnett
Some interest has been shown in reversing the Congressional decision to
repeal sections 16 and 32 of the Glass-Steagall Act. Here is a brief
explanation for why those sections were repealed only a dozen or so
years ago.