For some time now I have been advocating for a more normal short term interest rate policy from the Federal reserve vs. the ZIRP (Zero Interest Rate Policy) that they have been pursuing. My reasoning was, although the US GDP was not humming along at a more normal 3% real trend-line growth rate, things were…
Two Major Questions Facing Mankind!
Where’s Putin? He hasn’t been seen in public for ten days! and Will the word “patient” be removed from this week’s Fed policy statement? My answer to question number one: I don’t know and I don’t care. As to question number two, my answer is a question: why should we care? As there will never be a…
‘If it bleeds, it leads!’
And, Thursday morning’s banner headline in MarketWatch.com was a perfect example of the depths to which the financial media has fallen–“Mark Cuban: This tech bubble is ‘far worse’ than back in 2000.” I thought we might have seen the worst of this talk, maybe even put it to bed in our post, “Will miracles never cease?”…
“Plenty of noise, but not much guidance … “
The New York Times’ Jeff Sommer’s descriptor of last week’s news backdrop from Fed Chair, Janet Yellen’s ‘Humphrey-Hawkins’ testimony before Congress, as well as a slew of corporate earnings calls provided little enlightenment. The outcome in “Plenty of noise, … “ was not unexpected (as was also the case with the tepid guidance out of…
Will miracles never cease?
That proverbial ‘cold day in July’ happened Friday, February 20. King Rant, Rick Santelli, not only did not rant, but his segment on why people should not fear the Fed’s upcoming moves to raise and normalize interest rates (“Santelli Exchange: Alarm over interest rates”) was actually a rational examination of the question. Amazing! A miracle! Santelli’s…
“Good Deflation”
My guess is by the time this missal wings its way through cyberspace to your computer, phone, etc., the investment world (media in particular) will have shifted its attention to ‘bad inflation‘ and the prospects for higher interest rate increases on the part of ‘inflation watchdog’, the United States Federal Reserve Bank. These are indeed…
“Everyone is scared …”
This is our national psyche according to Nobel Laureate, Robert Shiller, a practitioner of the “dismal science” of economics. What are they scared of? The human race has deep underlying fears about technology and the lives their children will lead and this can be seen – in all places — in the negative yields in…
“Greece is the word … “
“Syriza for the Win? Anti-bailout party on course to form government” CNBC, we pardon the pun (emanating from the title song “Grease is the word,” from the 1971 musical “Grease”). These clever folks are using this headline to help launch the next-big-thing to worry about after Eurozone Quantitative Easing (When? … How much? … too…
Session 142–“What’s so bad about cheap oil?”
hephers Aside from the potential negative geopolitical effects, detailed in session 141 (“What really worries me” 1/12/15), nothing! As I established kortsessions to counter ridiculous media obsessions and misdirection, I thought it appropriate to flog this theme again; because the media just will not let it go. Also, it is important to acknowledge the good work that the…
Session 141– What really worries me (1/12/15)
It is not the prospect of a global recession some say is lurking as evidenced by the recent sharp drop in crude oil prices. As I have said before in kortsessions, I simply don’t buy this. Lower oil prices are a huge benefit to for everyone on the planet not involved in production or supporting…