Greenspan WAS the flaw in his free market model…because he altered free markets by lowering rates to boost the economy after the stock bubble burst. Plain and simple. Had free markets been allowed to correct after the bubble burst, we would have unwound the excess risk and leverage much sooner and with much less pain. … Read more Greenspan’s Flaw in Free Market Model
Have you noticed that Geithner’s voice cracks every time he says something he doesn’t really believe?
I have absolutely no sympathy for Madoff, but every time I see the clip on CNBC where the photographer keeps pushing him, it really disturbs me. Suddenly its no longer illegal to assault those we deem criminals? Maybe we should just start stoning people without a trial? And Joe Kernan (CNBC) suggests the photographer should … Read more Madoff Photographer
Bill Gross has the same silly smile on his face that Angelo Mozilo had at the peak of the real estate bubble. That should tell you something about the bond market.
Exactly what potential home buyers do they think are still out there. Most of those who would have been buyers at this period of time (in a normal market) were enticed to buy 2 years ago. A large portion of those buyers were pulled from future buying demand at that time, so we are currently … Read more Home Buyers?
This just shows how stupid these guys are. At first it might seem they may save a couple bucks driving instead of flying, but the loss of time they aren’t doing their job while on the road has to amount to substantially more loss in paid wage than the savings from driving. Shouldn’t they be … Read more CEO Roadtrip is a Freakin’ Joke
The FOMC should have left interest rates alone as the housing bubble started to burst, and let home prices fall back to historic trend-lines. Granted there may have been defaults, but they were necessary. These people didn’t deserve to be in these homes in the first place, they bought overpriced assets with no equity up … Read more FED: Finance & Economics Disability or FOMC: First to Originate Make-believe Crisis
Banks bidding for deposits to gain liquidity is just one more blatant sign from the markets that the FED needs to let interest rates go up to provide liquidity. Without the higher interest rates for bank deposits, people are just shifting funds into a treasury bubble. Its no wonder the treasury needs to provide funds … Read more Banks now bidding to buy other banks to gain their deposits
The de-leverage in the market to adjust back to normal risk levels is decreasing the money supply substantially, they are trying to inject huge sums of USD into the market to offset that. All in all, the functional money supply is actually down substantially. Also, a very large portion of the USD money supply is … Read more Case for USD Bull Market
How many more signs in the open market do people need to see to realize equilibrium interest rates need to rise to free up the markets? Right now, the low rates are just shifting the excess risk leverage into treasuries creating a pricing bubble there, driving the yields down, and escalating the spread between rates. … Read more Bank Liquidity