Category Archives: Economics
Investing in 2012
The only thing keeping the world from keeling over and succumbing to the $20+ trillion in excess debt (excess to a global debt/GDP ratio of 180%, not like even that is sustainable!) is the relentless central bank dilution of legacy currencies. For … Continue reading
Weak Dollar policies not America’s way forward
As the campaign season heats up we will likely hear candidates and incumbents talk about ways we can become more competitive in world commerce. The principal idea advanced for decades is ‘floating the Dollar.’ The idea being a declining Dollar … Continue reading
Bernanke sees the future
In a 2004 paper titled “Conducting Monetary Policy at Very Low Short-Term Interest Rates” Fed Chairman Bernanke discusses not only the possibility of purchasing corporate assets (bonds and stocks), but emphasizes that one other security class which the Fed may be inclined to acquire and has … Continue reading
Capitalism and the Fed
Separate risk from gain, obliterate transparency and choke the market with zero interest rates, and you’ve not only destroyed capitalism, you’ve also destroyed the economy by rewarding the most venal, corrupt, fraudulent and capital-destroying players while stranding the prudent on … Continue reading
Are stocks cheap?
Er, no. It seems the stock market is the only indicator showing the recession ended in 2009. A suspicion grows in the skeptical mind that the market is being relentlessly promoted by folks who have a vested interest in that … Continue reading
Huntsman correct on banks
Presidential candidate John Huntsman tells Jim Pethokoukis: We have a Sword of Damocles hanging over us with these banks that are too big to fail. We are setting ourselves up for disaster if we don’t recognize one of the lingering … Continue reading
Run for cover
Italy’s famous Leaning Tower of Pisa is a perfect metaphor for the European financial edifice. The whole continent is leaning perilously out of control. Central bankers claim they have a solution to leverage EUR 250bn by around 3-4x. Inquiring minds wonder, … Continue reading
Stock market showing the way?
Markets discount the future. Millions of investors the world over put their capital to work where they think the greatest opportunity exists. This is basic economics or capitalism 101. So this story from Bloomberg is cause for concern. Government officials wanted Globalization, … Continue reading