Global Market Commentary, Analysis and Investments
As you remember, dear reader, we decided to hoist our old, tattered “Crash Alert� flag up last week. About mid-week, as we recall.
Not that we had any inside information. Mr. Market doesn’t talk to us directly. We just read the papers – just like everyone else.
[Read more...]This week, the world caught a glimpse of what Henry Hazlitt might have called the “seen� – the primary, most conspicuous consequence of a preposterous economic policy. Of course, it is the “unseen,� what comes next, that we ought to be worried about.
We are referring here to the dawning of the QE2 era. In the shadow of the midterm elections, Federal Reserve Chairman Ben “full steam ahead� Bernanke announced the second round of quantitative easing, or, for us non econo-scholars, “money printing.�
[Read more...]Being a paranoid gold-bug conspiracy-theorist whack-job lunatic halfwit like I am, I am always monitoring the perimeter for new things, strange things, things that have never happened before, the theory being that if things that have never happened before keep happening, then one day everything will have happened, meaning, of course, that I will finally find real happiness, true love and a good frozen pizza.
[Read more...]My stomach was hurting, so I decided to take a little time off and soothe the old midsection with a few medicinal brews and a dose of pizza. The reason that my stomach hurt was because I had just read the stupidest economic essay, which was, unbelievably, penned by another lackluster university professor, and surprisingly printed by The Financial Times newspaper.
[Read more...]All I can say about yesterday’s price action in the currencies and precious metals versus the dollar is… WOW! OK… You knew that wasn’t all I was going to say about the moves yesterday! So, let’s get going!
The currencies are on an all-out assault on the dollar, folks… But the BIG winner from yesterday was gold… When I left the office, gold was up $25 on the day! And the “offset to the dollarâ€� euro (EUR)? Well, the single unit gained over 1 1/4-cents versus the dollar yesterday, and has added 1/3-cent this morning… Oh, and gold? It has added another $5 to yesterday’s $25 gain! WOW!
[Read more...]Epithet for a doomed economy…
What will they say? How will they describe the ’00s and ’10s?
Irish Prime Minister Brian Cowen was accused of being drunk when he gave a “croaky� radio interview two weeks ago.
He denied it.
But we’d be tempted to turn to the bottle too if we were in the fix Ireland is in. Ireland’s banks got into trouble. So the government threw them a lifeline…forgetting that the line was tied to its own neck. It guaranteed bank liabilities equal to four times Irish GDP. But isn’t that going to be the story of the whole period? Private sector banks and speculators got in trouble. Then, the public sector went down with them.
[Read more...]The Nobel Prize committee has never withdrawn a prize. It might want to consider it. In Tuesday’s New York Times, prizewinner in economics, Paul Krugman reveals either that he knows nothing about economics…or that there is nothing worth knowing in it. We’re beginning to think it’s the latter.
[Read more...]Japan was the world’s most admired economy in the ’80s. Then it was the world’s most despised economy in the ’90s. By 1995, economists pointed their fingers and laughed – the world’s most admired businessman had lost his left shoe.
But now, much of the world is barefoot. The US inflation rate has been going down since the early ’80s and was cut in half since last year. It now hovers barely above zero. Surely Japan – where prices have been falling for two decades – has something to tell us. As we pointed out last week, the Nipponese have been in decline for the last 20 years – with lower stock prices, falling real estate prices, and a falling GDP. Even the population has been sliding for the last five years
[Read more...]The currencies are trading in the same clothes as yesterday. It’s almost like the movie Groundhog Day, for the euro (EUR) has performed the say way as the previous sessions… For instance, the euro rose up to 1.2765 yesterday, only to fall back to just above 1.27, and then overnight, like the previous night, the euro rose to 1.2740, only to see it fall back again.
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Why Angela Merkel Wants Ireland to Take a Bailout
Ireland insists it doesn’t need a bailout from the European Union, but today, the EU is all but insisting Ireland take one anyway.
Let’s review how Ireland got where it is today: The Irish government went on a spending binge starting in the 1990s. Housing prices tripled in just 10 years. When the bubble burst, the banks got in trouble and government revenue cratered.
[Read more...]Click for detailed story