A Grave Threat
Olivier Blanchard, the IMF’s top economist, is calling for a doubling or tripling in the rate of inflation. He wants central bankers to raise their inflation targets to 4%-6% from an average of 2% today. What would possess anyone to recommend more inflation?
Is this Round Two?
Global equity markets have sold off sharply to start 2010. The risk trade that worked so well last year is getting creamed. A flight to quality is underway. Investors are concerned over the sustainability of mounting debt and deficits of weaker Euro member states.
A Threat to Global Economic and Financial Stability
There is an emerging real-estate bubble in China. Ultra-loose monetary policy in the U.S. and an over-the-top stimulus plan in China, coupled with a pegged yuan, have created optimal bubble conditions.
How to Boost the Yield on Your Portfolio
Punishing yields of 0.05% on three-month T-bills and .85% on short-term Treasury notes are devastating to the millions of investors who rely on income from their portfolios to fund living expenses.
The World’s Most Profitable Trade
In 2009, one investor earned more than the combined profits of Exxon Mobil, Microsoft, and Wal-Mart by employing a common Wall Street trading strategy-the carry trade.