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: #54, November 2014

The Longbrake Letter
- Bill Longbrake
Markets have shrugged off recent anxieties and have stabilized because market participants still want to believe in market-friendly outcomes. “Hope” is ascendant. But, unfavorable demographic trends, a global excess supply of goods and services relative to underlying demand, monetary profligacy, negative real rates of interest, and huge and rising debt-to-GDP ratios collectively are the hallmarks of a slowly developing global deflationary bust. The climactic moment of capitulation and realization that the status quo is neither fixable nor sustainable is not yet at hand. Also in this month's letter, Bill Longbrake provides a brief update on economic developments in the U.S., examines U.S. housing and fiscal policy, and discusses the plunge in global oil prices.

Mortgages and Regulations
- Bob Barnett
With the final major mortgage rules now completed, an assessment of their influence leads one to conclude that they did not break ground that the market had not already broken, but rather they solidified practices already established.

Regulatory Consistency is Lacking
- Ray Natter
Consistent regulatory policies are key for economic growth. However, since the passage of the Dodd-Frank Act in 2010, the financial services industry has had to deal with an onslaught of inconsistent regulatory requirements and goals. The seeming lack of any overriding regulatory policy creates needless inefficiencies and hinders the ability of the financial services industry to provide the necessary capital to our economy.