 "Photo: Edmarc Hedrick/The Daily Texan")
In light of the faltering economy, Lewis Spellman, UT finance and interdisciplinary professor, unraveled the complexities of the market and the ailing economy in a lecture Tuesday.
In the third of a four-part series, Spellman interpreted and analyzed current policies and market trends at the AT&T Executive Conference Center in a way that anyone could understand.
Spellman said the U.S. is undergoing both economic pressure and a financial system meltdown, requiring an extraordinary amount of help from the federal government and central bank. There is a serious question as to whether the U.S. government can fund the deficit with the sale of treasury bonds.
“We have had a financial meltdown in this country that we haven’t seen the likes of since the Great Depression,” Spellman said.
Spellman said recent indications show that global capital is looking for an alternative to U.S. treasury bonds as a safe-haven investment. Despite the purchases of treasuries, prices have declined recently and market yields have increased, indicating demand for treasuries. With ambitious plans to add government spending in health care, it is possible the U.S. will have to back off its attempts to solve all problems with borrowed funds.
“He has a way of putting his lectures into words so that everyday people like you and me who are not educated in finance or know a lot about the economy will know what he is talking about,” said Liz Mackey, director of Spellman’s Web site.
Spellman’s primary teaching is in financial markets and institutions at both the graduate and undergraduate levels. He was also an assistant to the chairman of the President’s Council of Economic Advisors and an economist with the Federal Reserve Board. His published works focus on market pricing of financial institution claims.
“Lew is one of the leading experts in capital markets,” said Stephen Pyhrr, senior managing director of the investment firm Kennedy Wilson.
Spellman will conclude his lecture series on Tuesday at 7:30 p.m., and launch his Web site, lewspellman.com, so the public will be able to access his lectures online and provide feedback.
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