Financial Common Sense

Here’s a bit from today’s Daily Reckoning that everyone needs to read.  I’ve added emphasis to some parts I think are especially important. For the last 15 years, the U.S. money supply has grown about twice as fast as GDP. Federal government liabilities, meanwhile, have grown three times as fast. As a result, the USA […]

Fed Plays Whack-A-Mole

Here’s the quote of the day from a story on MarketWatch.com “The Fed is trying to provide liquidity as quickly as it can, but there seems to be an endless supply of ‘moles’ and only one mallet,” said Kevin Giddis, managing director, Morgan Keegan & Co. Inc. Of course “provide liquidity” can also be read […]

How’s that working for you?

Back in January, I posted a short article basically saying that it was way too early to call a bottom in financial stocks.  I had been reading an article on TheStreet.com by Doug Kass where he made the case that it was time to buy the financial sector, via XLF.   While I agreed with much of his analysis, […]

Can you say stagflation?

It was interesting watching the stock market go into a steep sell-off today after the Fed meeting minutes were released.  For some reason, most people are still underestimating the severity of the problems in the economy, and they’re stunned when they see something that doesn’t fit into the Goldilocks scenario they’re anticipating. Here’s how CNN phrased […]

Here comes stagflation

This is something I’ve said would happen eventually.  Well, I haven’t said it here, but I’ve said it on a family email list where we discuss lots of weird subjects.  🙂  From todays’ Daily Reckoning Australia newsletter: “Treasuries tumbled after the government’s $9 billion auction of 30-year bonds at the lowest yields ever chased away investors,” reports Sandra Hernandez […]