201204.29
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Hubbard Versus Summers, and Goolsbee, and ….. Geithner?

Thinking Things Over    April 29, 2012 Volume II, Number 17:   Hubbard Versus Summers, and Goolsbee, and ….. Geithner? By John L. Chapman, Ph.D.      Canton, Ohio. The economic news was mixed at best this past week, and in contrast to the majority in the economics prognosticators’ profession, we fear a near-term pullback — we do not mind…

201204.29
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Trends – Negative Real Interest Rates

I’m sure many of you have recently read about the risk of bonds or that bonds are the next bubble.  Should we consider bonds a safe place to invest, to earn income or to diversify the risk present in today’s world? The current environment is definitely challenging.  The Fed, in its attempt to charge the…

201204.29
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Weekly Economic & Market Review

Targeted, timely and temporary. That was the clarion call of the Keynesians during the debate over the stimulus plan enacted at the beginning of President Obama’s current term. Stimulus was reckoned to be most effective when these three principals were embraced. We all know now that timely wasn’t much of a consideration in the structure…

201204.29
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A Closer Look: Currencies

Currency Exchange Rates The US Dollar is trending lower, as the Fed’s policy to keep interest rates low for the foreseeable future is continuing to wreck havoc on the dollar. The dollar may be worse if it were not for the monetary easing going on throughout the world. We seem to be the “tallest midget”…

201204.27
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Europe Is In Recession, the U.S. Isn’t Far Behind

The global banking system in 2012 has seen a marked transition from the monetary concept that gained universal traction nearly 100 years ago. The United States in 1912 was the only economic power without a central bank, but by 1913 one had been created, though its creators, both bankers and government officials, were very cautious…

201204.22
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Monetary Policy, the Real Economy, and Asset Prices: Where are We?

Thinking Things Over    April 22, 2012 Volume II, Number 16:  Monetary Policy, the Real Economy, and Asset Prices: Where are We?  By John L. Chapman, Ph.D.      Canton, Ohio. In the wake of recent market volatility, and ahead of the Federal Reserve’s Open Market Committee meeting here on April 24-25, calls for another round of Fed easing, “QE3,” have again…

201204.22
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The Proud Pound

Guest post from friend of Alhambra, Brian Cronin: REFLECTIONS ON THE EURO AND THE “PROUD” POUND If you asked most Brits what they thought about the euro, their answers would likely be short and pithy, and none too flattering. This rather insular attitude has the faint whiff of disdain. It is new, it is foreign…

201204.22
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Secular Trends – Keynesian Policies

Economies travel in cycles.  Some factors contributing to economic cycles are the following: Periods of great innovation and capital formation Fluctuations in fiscal policies Credit/Money creation War, disease, natural disaster At Alhambra, we often refer to Keynesian theory v Classical theory in reference to responses to the cyclical nature of an economy.  The reality, economies…

201204.22
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Weekly Economic & Market Review

The cover of Barron’s this week says, Outlook: Mostly Sunny. Their Big Money poll shows 55% of the professional money managers they surveyed are bullish on the stock market. If that makes you feel similarly optimistic about the near term outlook for shares, it might interest you to know that 59% of these perennially pollyannish souls…