The investment committee at Alhambra has been very busy these past 2 weeks analyzing the current world economic situation. Europe sits idle; they are mired in a financial crisis and engrossed in a political chess match. The rest of the world watches the drama and prays for it to end. For, resolution could ignite global trade and put their current [...]
Two central bankers this week, Mario Draghi and Ben Bernanke, started what I hope is a trend of placing blame for our economic troubles where it properly belongs - on the politicians who shirk their public responsibilities. Both bankers were expected to provide hints of future monetary policy accommodation and neither delivered the goods. At the press conference following the [...]
Thinking Things Over June 10, 2012 Volume II, Number 23: The Heartburn of the Next Sixty Days Presages Better News This Fall By John L. Chapman, Ph.D. Washington, D.C. Fed Chairman Ben Bernanke testified before the Joint Economic Committee this week, and said the Fed was “prepared to take action” to bolster a U.S. economy still facing “significant” risks [...]
According to the Federal Reserve's Beige Book, the US economy continued to grow at a moderate pace over the last two months, with only one of the 12 districts reporting a slower pace of growth. Economists had expected a report that would show more signs of a weakening economy and lost momentum, so the Beige Book was a bit of [...]
It won’t be easy. But if we are really going to achieve something good, for our clients and for ourselves, we’re going to have to defy Puttnam’s Law. No pain, no gain. (Bob Seawright, Above the Market) At today’s price of $2.43 per million Btu at the Henry Hub—though up 28% from the April low—drilling is destroying capital at an astonishing [...]
There are lots of reasons our economy crashed and burned back in late 2008. Lousy monetary policy, excessive government spending, bad housing policy (i.e. Fannie Mae and Freddie Mac), the failure of Pets.com, the weak dollar policy of every Bush Treasury Secretary, greedy investment bankers, stupid regular bankers, American Idol and Dancing With The Stars just to name a few. Or [...]
The S&P 500 Index fell over 3% for the latest week, as a disappointing jobs report number and lingering Euro-worries managed to knock the index below its 200-day moving average. The index does find itself at support at 1278, and seems likely to recover. It may be a short-lived rebound though. The S&P 500 Value Index, which consists primarily of [...]
"Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again." Ben Bernanke on the occasion of Milton Friedman's 90th birthday Bernanke was referring to [...]
Guest post by friend of Alhambra, Jeffrey Snider: Since the panic days just after Lehman Brothers in September 2008 through September 2011, the Swiss franc had gained almost a third compared to the euro. It was an epic move that had gained steam in mid-2011 as the renewed crisis over Greece and the PIIGS threatened further instability in the Eurozone. [...]
Guest post from friend of Alhambra, Brian Cronin: It’s déjà vu all over again, to quote Professor Yogi Berra. May was a bloody month for investors and June is starting out in the red too. The less than stellar economic numbers here were exemplified by the horrible jobs numbers this past Friday wiping out the Dow’s gains for year. With [...]
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