Broken clocks get a bad rap…at least they are right twice a day. Many are the objects, individuals and/or institutions who are lucky to be right once a day… or even once a year. Consider, for example, those poor souls who continuously predict rising interest rates. These “bond bears” have not been right once in the last 30 years.
[Read more...]Time to Sell Bonds
November 29, 2010 by Leave a Comment
Every time a frightening headline jolts the financial markets, investors flock to the relative “safety� of US Treasury bonds. But just how safe is a “safe� Treasury bond?
The most insidious and dangerous part of the global debt story is hiding in plain sight. US Federal debt is now roughly 85% of American GDP, according to “official� figures. But after including the present value of future liabilities like Social Security and Medicare, US debt-to-GDP soars to nearly 500%.
[Read more...]Fighting the Correction in the Worst Possible Way
August 26, 2010 by Leave a Comment
Want to know what is really going on?
Investors are waking up. They are wiping the sleep from their eyes. Behold! No recovery.
Analysts and the commentariat are struggling to make sense of it. With record low mortgage rates, and after eight programs designed to boost up housing, for example, sales are still plummeting. July saw the biggest monthly drop in existing house sales since the Johnson Administration.
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The Fed’s Interest Rate Madness
March Madness is now in full swing. Fed Madness continues apace.
The NCAA basketball tournament (which started earlier today) wouldn’t be very interesting without the 35-second shot clock forcing teams to shoot the ball. Forget slam dunks and three pointers, without the shot clock the game would be pass, pass, pass, while the clock would tick, tick, tick. The talents of big stars would be neutralized by opponents milking the clock. Bracketology? No one would care.
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