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The Vulnerability of Private Wealth to Government Financial Stress
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QEs, Currency Wars, the Trillion Dollar Platinum Coin and the Route to “Modern” Inflation
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VIDEO - Texas Financial Market Roundtable 2012
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Roadblocks to Recovery an Interview with Dr. Lacy Hunt
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Frank Beck on Investing in Uncertain Times
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The Vulnerability of Private Wealth to Government Financial Stress
Search Results for: financial news
Financial Repression: The Unintended Consequences of Saving the Sovereign
What’s new has often been lived before, but sometimes it’s not pretty. Presumably that’s what Clarence Darrow meant when he said, “History repeats itself, and that’s one of the things that’s wrong with history.” It is becoming increasingly clear that … Continue reading
Dominos: From Financial Crisis to Economic Crisis to Government Crisis
The dominos are falling. It’s the modern version of a 1930’s bank run. Since everything is bigger (the leverage) and faster (the computers) these days, so is the downfall in financial prices and institutions. The lead domino is an asset … Continue reading
Why These People Are Smiling: Is There No Atlantic Wall of Financial Protection for the U.S.?
We had some more fancy footwork and relieved smiles from Angela Merkel and Nicolas Sarkozy this past week. The reason for the smiles is not that the Euro debt crisis has been resolved, but they believe they have found a … Continue reading
US Sovereign Risk: Why the Financial Market Supports Treasuries Despite the Risk
Given the debt accumulations projections from Sovereign Risk Part 2 it raises the question of why is it possible that the market is willing to accumulating Treasuries on such favorable terms. As a value proposition Treasuries and the US dollar … Continue reading
Posted in The Spellman Report
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Budget Spin Control Undressed: Mike Granoff on the Government Financial Report
The White House makes projections of government deficits and debt accumulation such as contained in the Budget and the Economic Report of the President. Politicians being politicians thrive on good news and find ways to suppress the less flattering, better … Continue reading
Posted in Readings
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Tell Spellman It’s an Art, Not a Science
At the moment, the question of whether or not the Fed should be raising interest rates has become a much ballyhooed event for which every investor, financial writer, and taxi cab driver has an opinion. It’s supposedly based on the best estimates of what money variables need to be in order to align aggregate spending with the upper supply side level that won’t trip off too much inflation. While the Fed would like to be scientific about it, the dramatic effects of globalism places the decision more in the realm of art than science and the Fed is not comfortable with art. Continue reading
Country Debt Enablers and the Greek Conundrum
For a country with little penchant to tax and a greater penchant to spend, financing its fiscal deficit is an ongoing chore. When it comes to financing its deficits, governments have tricks up their collective sleeves – not available to the private sector. What makes it easy to finance a deeply indebted country is that its debt is placed — not sold and doesn’t meet a market test. Hence yields are not a deterrent to further indebtedness. Continue reading
The Cats and Dogs of the Equity Markets
Driving the economy to fuller employment is a macroeconomic policy success. But it comes at a cost of higher employee costs and generally reduced profit and stock returns. Some firms, in this global economy, produce with foreign labor and benefit from weaker foreign currencies. Hence, there will be both purring cats and offsetting dogs in diversified portfolios. Investment returns call for targeting those firms gaining cost advantages via foreign labor. Continue reading
Posted in The Spellman Report
Tagged Diversification Unit labor cost, Economic Policy, Economy and financial market pricing, Full employment and profit, Helicopter money, interest rates, monetary policy, Political economy, Profit Margins, Reserve currency, Stock price returns, US Sovereign risk and investing, wealth preservation
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Oil Boombustology
It’s long been in the DNA of market observers that when money growth outpaces the economy’s growth, booms are created and so are busts. The latest is the oil boombustology with greater impact than is commonly understood. This raises the question of what is left of growth in the US economy without oil expansion. Continue reading
Goodbye to the Robinson Crusoe Bond Market
With the U. S. economy having achieved lift-off momentum, the Federal Reserve has ended it epic and historic bond buy known as quantitative ease. The corollary reflex is that interest rates will return to our historic sense of normal, but that is not occurring. The Fed is not all-powerful and is losing pricing control to collective global forces. Continue reading