Bernanke and Bubbles
Moreover, I worry about the effects on the long-run stability and efficiency of our financial system if the Fed attempts to substitute its judgments for those of the market. Such a regime would only increase the unhealthy tendency of investors to pay more attention to rumors about policymakers’ attitudes than to the economic fundamentals that .. read more
Is Cyprus A Tipping Point?
Could tiny Cyprus with a population of less than 1 million be the undoing of the Euro experiment? It seems surreal to think that such a tiny country, representing less than a quarter percent of Euro GDP could be the trigger for the unraveling of an entire continent’s currency but it is often small countries .. read more
Buy Low, Sell High
Buy low, sell high. It is one of the most abused of market axioms and says both quite a lot and nothing at all. Of course you need to buy assets when they are cheap and sell them when they are dear but low and high aren’t exact terms and are, like beauty, amorphous qualities .. read more
Uh, Oh. Bernanke Agrees With Me
There’s important potential for the economy to strengthen significantly if there’s a greater level of security and confidence about where we’re going. A plan for resolving the nation’s longer-term budgetary issues without harming the recovery could help make the new year a very good one for the American economy. Ben Bernanke in a speech last .. read more
A Perfect Storm?
As the Northeast prepares for Hurricane Sandy, markets are preparing for their own perfect storm. The first feeder bands are coming ashore now and whether we feel the full brunt depends to a large degree on how the political class responds. The Fed is already in full FEMA mode with results similar to those witnessed .. read more
How Much Of The Future Can We Borrow For Today?
Ben Bernanke wants you to borrow and spend today. He also wants you to stop buying safe investments like Treasuries, CDs and anything else with a guarantee attached. He wants you to buy corporate bonds, junk bonds and stocks. He really, really wants you to buy a house. What he doesn’t want you to do .. read more
Thinking Things Over: Bernanke Casts a Vote for Obama
Thinking Things Over September 16, 2012 Volume II, Number 31: Bernanke Casts a Vote for Obama John L. Chapman, Ph.D. Washington, D.C. “Reason…teaches all Mankind, who would but consult it, that being all equal and independent, no one ought to harm another in his Life, Health, Liberty, or Possessions. [And what best promotes this?] …[A] standing Rule .. read more
Bernanke Warms Up The Helicopter
After last week’s Jackson Hole speech, expect to see Ben Bernanke sporting a sling the next time you see him. There is simply no way he could spend that long patting himself on the back and not suffer at least a sprain. The monetary yoga master asserted that the Fed’s non traditional monetary policies were .. read more
