Former Federal Reserve Chairman Alan Greenspan talks with David Westin about central bank investments, potentially funding infrastructure investment through 30-Year treasuries, and why he sees a return of inflation. He speaks on "Bloomberg ‹GO›." (Source: Bloomberg) … [Read more...]
Archives for March 2016
What we’re Reading: Gold Soars as Fed Ignores Inflation Risk
Gold soars as Fed Ignores Inflation Risk (MarketWatch) SEC Tries to Protect Investors from their own Laziness (WSJ) Internet Sales Boost Fedex (WSJ) Is Ackman about to Blow-up another Hedge Fund (Business Insider) Journalists Suck up to Fed (WSJ) Is this Rally for real? (Barron's) Recent Stock Rally Appears Overdone (Barron's) Is America's Tightening Cycle Almost Over? (Financial Times) Why Negative Rates are Harmful (Barron's) … [Read more...]
This Fed Policy has cost Savers Billions
A study of Federal Reserve policy has shown that savers have lost billions thanks to misguided actions by the Fed. CNBC reports: Various academic studies have shown that the low interest rates have pushed even more money into mattresses as savers have sought to make up for not getting returns by putting away more money. The overall savings rate went from 3.3 percent in 2006 to 5.2 percent in 2016, according to research from NerdWallet, a personal finance information site. NerdWallet took those rates, then applied them to average disposable personal incomes and used as a baseline a … [Read more...]
Will Yellen Change the Rules Again?
As the chart below makes clear, the Fed is meeting is now meeting its congressionally mandated objectives. The same objectives Yellen & Co., has thrown in the face of the public at every Fed meeting to justify a continued ultra-loose monetary policy when none was needed. Now that the mandate has been met, look for the Fed to dream up new and even less credible ways to keep the monetary spigot wide open. … [Read more...]
Morning Reads: China’s Looming Currency Crisis
The Spillover of Negative Rates (Bloomberg) China's Looming Currency Crisis (WSJ) Hot Money Moves into Emerging Markets (Financial Times) Investors Not Sold on Robo-advice (Gallup) ECB Distorting Corporate Bond Market (Financial Times) … [Read more...]
Morning Reads: America’s Most Poorly Managed Companies
Airlines: Still America’s Most Poorly Managed Companies (WSJ) Robo-Medicine on the Way (MIT Technology Review) A Currency Rally that is too Good to Last (WSJ) Investors Reach for Yield in CoCo Bonds: (WSJ) Prescription Drug Prices Double (Financial Times) Are Index Investors the Dumb Money? (Financial Times) … [Read more...]
Yeti Coolers
Yeti keeps stuff cool. Videos like this help me get through the winter. … [Read more...]
The Monday Melee: Buybacks Boosting Market
Buybacks Near All-Time Highs Forecasts for Q1 2015 show S&P 500 companies nearing all-time high stock buybacks. Almost Half of Cash Spent on Buybacks American companies have been spending lots of cash on buybacks. IB Times' Owen Davis reported in November: Of the $2.2 trillion in cash corporate America is poised to spend next year, roughly half will go directly to shareholders. Between stock buybacks and dividend increases, Goldman Sachs estimates that just over $1 trillion will end up flowing to shareholders, a 7 percent increase over 2015. “Despite weak activity during the … [Read more...]
Morning Reads: Is the Left to Blame for Bubble-Bust Economy?
Is the Left to Blame for Bubble-Bust Economy? (Bloomberg) Mutual Fund Managers view Cash as Trash (WSJ) Oil Supply Finally Responding to Price (WSJ) Oil Executives Incentivized to Destroy Value (WSJ) Negative Interest Rates More Dangerous than You Think (Fortune) Merkel Takes a Beating at Ballot Box for Refugee Policy (Financial Times) … [Read more...]
Afternoon Reads: 7 Year Bull Market Built on Shaky Demand
Slammed by Obamacare (WSJ) 7 Year Bull Market Built on Shaky Demand (Reformed Broker) The New Mediocre (Economist) Do Low Rates Cause Low Inflation (The Grumpy Economist) Plastic Eating Bacteria (WSJ) Draghi’s Bazooka Unleashed (WSJ) See also A gift from the Banks Markets on Pace for Most Volatile Year in almost 80 years. … [Read more...]