“Cash is king,” was once the old saw. The saying became passé in boomtime. Nobody wanted to hold on to cash. There were stocks and real estate to buy, not to mention big screen TVs and granite counter tops. Besides, the PhDs at Federal Reserve stay up late at night figuring out how to make money less valuable. Ben Bernanke and his colleagues keep printing the stuff to solve what they fear the most: insufficient aggregate demand and liquidity traps.[Read more...]
Well… Iâ€™ve spent a lot of time this week talking about the rise in Treasury yields… Apparently the rise in yields wasnâ€™t confined to Treasuries, as municipal bonds are getting whacked too… I saw that my friend and former colleague, David Galland, had this to say about the problems with the municipal bonds…[Read more...]
Your editorâ€™s father passed through town last weekend to share a few moments with his son, and to take a shift at the front door dispensing Halloween candy to trick-or-treaters.
During the course of the visit, your editorâ€™s father also dispensed an amusing array of anecdotes and old jokes. One of those old jokes described the difference between an optimist and a pessimist:[Read more...]
As we draw closer and closer to the FOMC meeting next week, the clearer the markets believe they are to figuring out what the FOMC might do with regards to quantitative easing (QE)… So, I found some quotes from bond king, Bill Gross, and analyst, Mark Gilbert, regarding what they see. You wonâ€™t want to miss their quotes![Read more...]
Well, not only is the giddiness of the weekend over, but the giddiness of the recent currency and precious metals rally is looking very tired. Whatâ€™s strange about the dollar rebound is the weakness in Treasuries. The yields on Treasuries are rising again… And if youâ€™re a fan of silver, you wonâ€™t want to miss the â€œThen there was thisâ€� today… So, weâ€™ll talk about the dollar rally, and the Treasury weakness, along with other things this morning. Are you ready? Yes, Iâ€™m ready…[Read more...]
Why, we begin today, are the editors of Time obsessed with troikas of bureaucratic saviors?
Youâ€™d think after The Committee became the butt of cocktail jokes during the Panic of â€™08… theyâ€™d have shied away from anointing the â€œNew Sheriffs.â€� Alas, there it was, this spring, in feminine form.[Read more...]
No matter how many times the Conference Board reports dismal consumer confidence, or the Institute for Supply Management reports anemic manufacturing activity or the National Association of Realtors reports abysmal home sales, some economist somewhere will track down a hopeful data point and force-feed it into his â€œimproving economyâ€� scenario.[Read more...]
Good day… And a Wonderful Wacky Wednesday to you! Why Wacky? Well… The dollar rally that I told you was merely a correction of the too far, too fast moves in currencies, and precious metals, is over… And over in a BIG WAY! Weâ€™re right back to the lofty levels we saw on Friday morning… So, your two days of opportunity to buy currencies and precious metals at cheaper levels is now in the rearview mirror.[Read more...]
In my email I got a forwarded essay titled â€œProfit from the Collapse of Debt-Fueled Growthâ€� by a guy named Jim Quinn.
It was immediately interesting to me, as I am a guy whose natural lazy and greedy nature makes me instantly attracted by things that start out with the word â€œProfit,â€� especially if the word â€œEasyâ€� is also included.[Read more...]
I keep seeing things, scary things, terrifying things characterized as â€œfor the first time ever,â€� like Tyler Durden of zerohedge.com writing that â€œAs per the August 31 DTS statement, the US ended the month with a new all-time record of $13.45 trillion in debt, an increase of $210 billion from the beginning of the month (or $225 billion in public debt, net of intragovernmental holdings). With just 30 days left in fiscal year 2010, the US has added $1.54 trillion in the eleven months ended August 31, a monthly average increase of $140 billion. As a point of reference, the US has received $1.53 trillion in withheld income tax over the same period, confirming that the US continues to issue more than one dollar in debt for every dollar it receives via income tax revenue,â€� all of which are new records of one kind or another! Gaaaah! I am screaming in outrage and fear![Read more...]