Raymond James | Professionally Speaking | Bailout, Money Market Guarantee May Prevent “Run on the Bank” Situation

With financial markets operating in crisis mode for more than a year, investors should welcome U.S. government moves to temporarily ban short selling in 799 financial stocks and to restore confidence in money market funds by guaranteeing their net asset value at $1 per share. Further, the idea of setting up a federal agency similar to the Resolution Trust Corporation – the RTC handled the savings and loan industry turmoil in the 1980s and 1990s – to buy up bad debt may be good news for homeowners as it might finally put a floor under the housing market. We’re in a full-blown credit crunch, can expect even tighter credit, and all of this constitutes a serious restraint on the economic outlook, says Raymond James’ Chief Economist Scott Brown. The recovery process is likely to be lengthy, he says in this edition of Professionally Speaking, hosted by Larry Pugliese.

For personalized advice on how the current global economic situation may present investment opportunities, please contact a Raymond James financial advisor.

Scott Brown, Ph.D.

Chief Economist, Equity Research
Raymond James & Associates

Scott Brown is chief economist within the Equity Research Department at Raymond James & Associates, Inc., member New York Stock Exchange/SIPC, a wholly-owned subsidiary of Raymond James Financial, Inc. (NYSE-RJF).

Prior to joining Raymond James in 1993, Dr. Brown was a manager of economic research at Pacific First Bank, Seattle, and had previously been director of research at First Imperial Advisors. He has also worked as an economist with San Diego Gas & Electric.

Dr. Brown graduated with a bachelor’s degree in mathematics from the University of California, Irvine in 1978. He then graduated from the University of Illinois with a master’s degree in statistics. In 1986, he completed his schooling with a doctorate in economics from the University of California, San Diego.

Dr. Brown has taught at the University of Illinois, the University of California at San Diego and San Diego State University. He is a member of the American Economic Association and the National Association for Business Economics. He also serves on the Governor's Council of Economic Advisors for the state of Florida and is a member of the Economic Advisory Council of the American Bankers Association.

All expressions of opinion reflect the judgment of the Equity Research Department of Raymond James & Associates at this time and are subject to change. Information has been obtained from sources considered reliable, but we do not guarantee that the material presented is accurate or that it provides a complete description of the securities, markets or developments mentioned. Other Raymond James departments may have information that is not available to the Equity Research Department about companies mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this presentation's conclusions. We may perform investment banking or other services for, or solicit investment banking business from, any company mentioned. Investments mentioned are subject to availability and market conditions. All yields represent past performance and may not be indicative of future results. Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd. are wholly-owned subsidiaries of Raymond James Financial.

Mutual Fund, Annuities and UIT Disclosures
Privacy Notice | SEC Order Execution/Routing Disclosure | Site Map

Raymond James & Associates, Inc. member New York Stock Exchange / SIPC and Raymond James Financial Services, Inc. member FINRA / SIPC are subsidiaries of Raymond James Financial, Inc.