Global Market Commentary, Analysis and Investments
Gold is still getting up. Hemlines are going down. That’s all you need to know.
Gold rose toward $1,230 yesterday. Why? Reports said investors were worried about Europe.
Well…yes…Europe…and Asia…and North America…
The problem in the world economy is debt. There’s too much of it. Investors who aren’t delusional know that too much debt spells trouble. And when government adds more debt it’s not really going to make things better. It’s going to make them worse.
[Read more...]After yesterday’s manic rally, the major US indexes opened down a bit this morning. Earlier, the Commerce Department reported consumer spending “unexpectedly” stalled in April – the first time since last September the numbers didn’t go up. Incomes rose, and so did the savings rate.
Of course, this is a good thing in the long haul. We need savings to rebuild a healthy economy. But in the credit-addled mind-set of Wall Street, the mighty consumer who drives 70% of the economy isn’t doing his part to support “the recovery.” The Dow sits at 10,205 as we go to print.
[Read more...]Yesterday marked the one-year anniversary of the rally. The Dow rose a piddly 11 points. Gold sold off $1.
This rally has gone on for so long most people think it is not a rally at all, but a new bull market. Worldwide, it has taken equities up some 73%…making it one of the greatest rallies ever.
[Read more...]It is astounding how many economists, government officials, and Wall Street strategists construe the current economic conditions as evidence of a bona fide recovery. It is a testament to the power of the rose-colored glasses handed out by our nation’s leading universities that such a feeling could be widely held despite the clear and present danger that compounds daily. The myopia leads us to enact policies that actually exacerbate our problems. The “remedies” are postponing, perhaps indefinitely, a true recovery.
[Read more...]This morning Tim Geithner helped the White House unveil a $3.8 trillion government budget for the coming fiscal year. If approved, the fiscal year 2011, which starts in October, will ring in a record $1.6 trillion deficit.
Say again, $1.6 trillion. This is next year, mind you… Even the NBER will be convinced the recession is over by then. Whatever legitimate chance they had to spend under the guise of “emergency” or “the credit crisis” is long gone.
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Taking Advantage of the Fed’s All-You-Can-Spend Buffet
The big discussion this week — and the reason we’ve seen such a stellar week for stocks — was the decisions of the world’s Central Banks to give free money to Europe. And why not? They’ve been giving free money to US banks for the past few years. And just look how well that’s been working out! Clearly these wise monetary sages know precisely what they’re doing.
[Read more...]