Contributing Editors' Blog Entries
FHFA Makes a Big Bet
Submitted by Bruce Krasting on 10/03/2009 - 22:18 Reports from FHFA show they are rolling over tons of dead mortgages. What's the objective? To buy some time.
The Bullish Bear?
Submitted by Leo Kolivakis on 10/03/2009 - 17:29 Back in early March, Steve Leuthold told investors to "buy stocks now or you'll regret it". He was absolutely right then and I think he's right now. Forget retesting the March lows, the stock market is heading higher. He is now calling for the Standard & Poor’s 500 Index to jump to 1,350 next year as the economy recovers from the worst contraction since the Great Depression.
Where in the World are the Jobs? New Economic Rule: Job Growth not Necessary in new Economy. The Second Derivative Gives Way.
Submitted by drhousingbubble on 10/03/2009 - 11:55 new economy For the first time since March, the stock market actually showed a little reaction to reality based information. As it turns out, even removing any hint of stimulus will cause the market to retreat. We already expected the cash for clunkers program was largely a gimmick with auto sales dropping like a stone in the last reading. Home sales are being artificially juiced by the $8,000 tax credit and the Federal Reserve keeping 30 year mortgages near historical lows. You can expect that if the Fed and the tax credit were removed we would see a similar reaction as the cash for clunkers program...
The Real Reason the Giant, Insolvent Banks Aren't Being Broken Up
Submitted by George Washington on 10/03/2009 - 04:18 Want to know why the giant, insolvent banks aren't being broken up? Here's why...So Fellas, Do We Have Deflation?
Submitted by George Washington on 10/03/2009 - 00:17 Inflation or deflation? Round 1 goes to ... deflation.Blame it on Rio?
Submitted by Leo Kolivakis on 10/02/2009 - 20:46 Back in August, CPP Investment Board (CPPIB) announced that it has entered into a joint venture with Cyrela Commercial Properties S.A. Empreendimentos e Participações, GIC Real Estate, the real estate investment arm of the Government of Singapore Investment Corporation, to invest up to US$250 million for the development, acquisition and management of institutional-quality commercial properties in Brazil. That appears to have been a very wise decision.An American Story
Submitted by Bruce Krasting on 10/02/2009 - 16:30 The banks are no longer making home equity loans. Therefore people aren't building an addition or making big improvements. The impact on the small contractors has been big. The impact to the illegal workers has been bigger. One story.
President Obama: Please Call Angela Merkel ASAP
Submitted by Econophile on 10/02/2009 - 14:36 President Obama Germany is the biggest test for Keynesian stimulation versus a hands off approach. The German election clinches their turn away from fiscal stimulus. Germany has done the least Keynesian spending gimmicks of any major economy and the new financial team headed by incoming Minister of Finance, Hermann Otto Solms will turn to free market friendly policies. You won't believe what they have to say about economics and their economy. I predict they will recover from the re/depression long before the U.S.Time Magazine's Justin Fox: "Some Financial Market Conspiracies Are Real"
Submitted by George Washington on 10/02/2009 - 13:43 Time Magazine Zero Hedge has been accused of discussing "conspiracy theories". Okay . . . but what does that mean?Gold?
Submitted by George Washington on 10/02/2009 - 12:41 A round-up of arguments for looking at gold as a reasonable investment, including: 1) China; 2) declining production; 3) inflation; 4) deflation; 5) global short-term interest rates; 6) uncertainty and distrust in government; and 7) flight to safety.Back to Business as Usual?
Submitted by Leo Kolivakis on 10/01/2009 - 21:40 A year after the financial disaster of 2008, the search is on for investing’s winners and for its casualties. There are surprisingly few of either.Looking at the Economy Through Gray Colored Glasses
Submitted by Econophile on 10/01/2009 - 17:48 Why do economists keep getting it wrong? How can we ever trust what they say again after their miserable performance before the crash? They see what they want to see. Sheep. If we've learned anything it's to ignore mainstream economists. Listen to the outliers because the mainstream never gets it right. Here's today's data brought to you by an outlier. Remember to be skeptical.H2SO4 – LEI?
Submitted by Bruce Krasting on 10/01/2009 - 17:23 Sulfuric acid is a backbone commodity for the economy. If you think the Vol. on oil is high take a look at the price action for this stuff. What's next is the big question. The current price is at a five year low. Looking at history it could be 300% higher in a year.
It’s October 1, S&P down 20 pts, you’re Chairman of the Fed. What do you do?
Submitted by EB on 10/01/2009 - 11:52 You stare down into the solid gold basin in the second floor executive washroom on C Street, chuckling lowly to yourself. The memory of the impertinent Congressman asking the location of the Fed’s gold—your gold—fades. You catch a glimpse of your perfectly coiffed beard and immediately sober, then smile wryly at your reflection. The shorts are feeding again at the S&P trough, feeling confident. Let them be confident.