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Tag Archives: qe
End of the Line! China and Germany Look Ready to Pop
End of the Line! China and Germany Look Ready to Pop The U.S. stock market has finally hit a speed bump after more than six years of a Fed- and QE-driven rally. The S&P 500 is up 232% since March of 2009 despite this unprecedented stimulus in the feeblest economic recovery in history. But since […]
QE Breeds Instability
QE Breeds Instability Central bankers have promised ad nauseum to keep rates low for long periods of time. And they have delivered. Their claim is that this helps the economy recover, but that is just a silly idea. What it does do is help create the illusion of a recovering economy. But that is mostly […]
How To Spot A Bubble
How To Spot A Bubble We’ve been entertaining ourselves to no end the past couple days with a ‘vast array’ of articles that purport to provide us with ‘expert’ opinion on the question of whether we are witnessing a bubble or not. Got the views of Goldman’s David Kostin, Robert Shiller, Jeremy Grantham, Jeremy Siegel, […]
From Whence Cometh Our Wealth—–The People’s Labor Or The Fed’s Printing Press?
From Whence Cometh Our Wealth—–The People’s Labor Or The Fed’s Printing Press? It is hard to believe that in these allegedly enlightened times this question even needs to be asked. Are there really educated adults who believe that by dropping helicopter money conjured from thin air, the central bank can actually make society wealthier? Well, yes there […]
Something Smells Fishy
SOMETHING SMELLS FISHY It’s always interesting to see a long term chart that reflects your real life experiences. I bought my first home in 1990. It was a small townhouse and I paid $100k, put 10% down, and obtained a 9.875% mortgage. I was thrilled to get under 10%. Those were different times, when you […]
An Insane Financial World
An Insane Financial World We know that most western governments are deficit spending, borrowing heavily, in debt beyond the point of no return and must increase taxes and appropriations from their citizens. We know that politicians will take the politically expedient path instead of addressing financial problems. We know they will “extend and pretend,” delay, […]
“We Reached The Tipping Point”: Income Inequality Is Highest Since Records Began
“We Reached The Tipping Point”: Income Inequality Is Highest Since Records Began While soaring stock prices do nothing to boost the economy, because as 7 years of hard facts have shown, the only thing “trickle down” QE has done is forced economists to jump the shark and demand not one but two seasonal adjustments to […]
Leading German Keynesian Economist Calls For Cash Ban
Leading German Keynesian Economist Calls For Cash Ban It’s official: the world has gone central-planner crazy. Monetary policy, whether in the form of “conventional” methods such as the micromanagement of policy rates or so-called “unconventional” measures such as QE, has proven utterly ineffective when it comes to both “smoothing out” the business cycle and reigniting […]
Afraid of Losing Trillions, Wall Street Fights Fed Rate Hikes
Afraid of Losing Trillions, Wall Street Fights Fed Rate Hikes Since last week, $2.1 billion worth of artworks have changed hands at Christie’s and Sotheby’s in New York. “Les Femmes d’Alger (Version ‘O’)” by Pablo Picasso sold for $179.4 million, highest price ever paid for a painting at an auction. The bronze, “L’Homme au Doigt,” […]
It’s Official: The BoJ Has Broken The Japanese Stock Market
It’s Official: The BoJ Has Broken The Japanese Stock Market As those who follow such things are no doubt aware, The Bank of Japan often says some very funny things about inflation expectations and monetary policy. Essentially, the bank is forced to constantly defend its QE program because as it turns out, monetizing the entirety […]
The Goldilocks Illusion
The Goldilocks Illusion Why Market Participants Liked the Payrolls Report Some people have wondered why the stock market reacted with such a big rally to last Friday’s payrolls data. After all, the report wasn’t much to write home about, especially if one ponders the details. In addition, the already weak March payrolls data were revised lower […]
How the Liquidity “Delusion” Leads to a Crash
How the Liquidity “Delusion” Leads to a Crash They were just about all there at the Las Vegas SkyBridge Alternatives Conference, or SALT: Daniel Loeb, T. Boone Pickens, and of course George Papandreou, who in March 2011 as Greek prime minister had produced one of the funniest official Eurozone lies ever when he reassured those that were […]
WSJ Slams Bernanke’s Rambling Blog Post: “Stop Blaming Everyone” For Your Mistake
WSJ Slams Bernanke’s Rambling Blog Post: “Stop Blaming Everyone” For Your Mistake The mainstream is beginning to sound a lot like some fringe blog… A week after the world’s largest sovereign wealth fund unleashed a tirade against high-frequency trading and monetary policy distortions, The Wall Street Journal has penned an Op-Ed ramping up its war against Bernanke (and The […]
How Shale Is Becoming The .COM Bubble Of The 21st Century
How Shale Is Becoming The .COM Bubble Of The 21st Century As I review the financials of one of the largest shale producers in the United States, Whiting Petroleum (WLL), I can’t help but notice the parallels to the .COM era of 1999 which, to some extent, has already returned to the technology and biotech […]
When Exactly Will the Fed Launch QE4?
When Exactly Will the Fed Launch QE4? Money From Nowhere On Friday, the S&P 500 and the Nasdaq closed at record highs. It’s the first time both indexes have done so since December 31, 1999. Why such optimism? High profits, you say. But where do profits come from? Households have less money to spend than […]
