For what it’s worth, and because I’m tired of getting into political debates where people create their own facts: You can write this down and see how correct I end up being in the next 5-10 years…frankly, I hope I turn out to be wrong this time. The Euro is going to continue to fall, … Read more For What It’s Worth:
I posted this to a friends response about the political parties which also had a mention about technocrats. Figured maybe it should go on the blog: The honest truth is that the United States only became the worlds superpower because we were the only industrialized country not to have it’s infrastructure destroyed with two world … Read more Long Term Trends Always Prevail…Unfortunately. : (
Well, at least Paul Volcker has finally caught up and is pointing out things I stated nearly 2 years ago. Again, this wasn’t hard to see coming…you just had to look at the facts.
Our government wastes a lot of time on the soap box about issues that really have nothing to do with solving the problem. They spend very little time solving the real problem. Housing prices are a symptom, not the problem. Executive pay was a symptom, not the problem. Madoff was a symptom, not the problem. … Read more Ditech is Wrong…People are Stupid
The Fed has just fueled the treasury bubble even more….just like they fueled the housing bubble after the stock bubble burst They keep trying to fix the wrong problem. Instead of letting risk get priced back into the economy, they just keep trying to shift the excess risk around. They are robbing Peter to pay … Read more Fed Wearing Blinders
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
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
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
If Einstein were asked to solve the wrong problem, even he would come to the wrong conclusion. It is my opinion that this is what is happening to the powers that be in the U.S. Federal Reserve and Treasury. Yes, there was a housing bubble, which preceded the current economic problems, but it is NOT … Read more The problem with the current economic solutions