There has long been a disconnect between gold and institutional investors. The instincts of these managers of large sums are typically tied to the generation of cash flows to feed the monster — that is, the institution’s cash flow needs. … Continue reading
Since the housing and mortgage expansion reached its unsustainable zenith nearly five years ago, economic headwinds and financial contraction have been at the forefront of financial market discussions. Two years ago, the sovereign debt problems of the developed world further … Continue reading
The extent and implication of the U. S. debt overload. Neither monetary nor fiscal policy can solve the debt problem nor the profound side effects of excess debt. Download .pdf Welling at Weeden Interview
How much country debt is too much? This is an issue of relativity. In this case relativity depends on the income flows from which debt service can be paid. Whether the debt belongs to the consumer or the government, the … Continue reading
Contact Beck Capital Investments In December, when my 2012 view became positive, I questioned whether I was misinterpreting the value of the LTRO and the Chinese reduction in their Bank Reserve Requirements, as I appeared to be alone in my … Continue reading
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
The ECB lending program to banks is off and running. On the first day offered, low interest rates loans were subscribed by banks in the amount of $635 Billion, an amount greater than the Fed’s QE2 which took nine months to complete. This is a battle of whether liquidity will trump insolvency and stabilize government debt prices. If it does, it will set off an asset bubble in assets that thrive in low and stable interest rate environments. Continue reading
The consequences of excess debt are now facing the leaders of Europe head on, and a monumental decision must be made whether explicitly or implicitly. Excess debt leads to a long chain of D words: Deleveraging in an attempt to … Continue reading
Some might be wondering why the euro zone rescue focus turned to saving banks as opposed to saving governments. The reasons are illuminating. Consider the following: When a government has a debt bulge, the debt must be held as someone … Continue reading
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The extent and implication of the U. S. debt overload. Neither monetary nor fiscal policy can solve the debt problem nor the profound side effects of excess debt. Download .pdf Welling at Weeden Interview
