201110.31
Off
0

Rant of the Day – Whirlpool fires 5000 Employees

On behalf of citizens: Hey Mr. Obama, We need jobs! Mr. Bernanke you’re not helping either! The first headline I read this morning: Whirlpool to fire 5000 employees. Our economist John L. Chapman has been pleading for less costly regulation since coming aboard back in the summer.  This administration has a central ideology which, in practice, imparts…

201110.31
Off
0

World population has reached 7 billion

According to Worldmeters.com, the world’s population reached 7 billion today. The site has some pretty neat counters that cover government expenditures, media and the environment. The global population is rising inexorably. The burgeoning middle class of Asia is no longer content to eat bucketfuls of rice and cabbage, with an occasional chicken’s foot as a treat….

201110.30
Off
0

Weekly Economic & Market Review

Is the great bear market of 2011 over? Stocks have risen relentlessly this month culminating with a giant 3% move last Thursday. The plan revealed that day to address the European debt crisis is the most often cited reason for the rally but the resilient performance of the US economy, as evidenced by the GDP…

201110.30
Off
0

Weekly Chart Review

The S&P 500 is currently up 13.58% for the month. Treasury ETFs, which had been the winners for the year coming into the month, have sold off hard, especially the 20-year+ Treasury ETF (TLT), which is down 8.69% for the month.  The S&P 500 is up almost 20% from the low adding about 1,000 points…

201110.30
2
0

Eurozone Debt, Money, Capital, and Naked Emperors

Thinking Things Over              October 28, 2011 Volume I, Number 15:  Eurozone Debt, Money, Capital, and Naked Emperors By John L. Chapman, Ph.D.                                                                                                                         Washington, D.C. In reviewing the details of the Greek bailout/Eurozone debt “deal” hammered out early Thursday morning alongside the Federal Reserve Board’s likely meeting agenda for next week, two books, written a century apart and…

201110.29
Off
0

‘Tis The Season For Seasonal Obfuscation

The headline GDP number was apparently enough growth to completely erase all thoughts of any renewed recession.  However, most of us know that one quarter is not a trend and that the quarterly numbers are often statistically adjusted beyond something non-statistically meaningful. If we look at the headline numbers in sequence, it certainly seems that…

201110.28
Off
0

Economists put Regulatory Policy in Economic Cycle Conversation

The Alhambra Investment Team has been very vocal about our disappointment in current Fiscal Policy.  Ben Bernanke recently joined ranks, essentially saying the Fed has done what it needs to do and that legislators must get their collective acts together because they are causing major headwinds.  This has led to discussions at Alhambra on Nominal GDP…

201110.28
Off
0

Marx, Keynes and the Last Economic Mile

There is a mathematical problem running through the mainstream of economic thought, one that has been expressed in various forms since the time of Adam Smith. There is apparently a shortcoming to capitalism that springs forth from the very basic, elemental idea of profits. If businesses can make a profit on their endeavors, necessarily paying…

201110.28
Off
0

Market takes off!

At it’s high, the S&P 500 was up 20 percent from the October 4th low and closed at 1284. At the moment, 94% of stocks in the S&P 500 are trading above their 50-day moving averages.  The stock market isn’t the only asset class that has been on fire recently.  Corporate bonds — both investment grade…