Ben Bernanke, Flame-Thrower In an ideal world, investors would allocate capital to the stock market because the potential returns were attractive. Not because The Federal Reserve had obliterated all the alternatives. Yes, the Fed’s announcement that it would keep interest rates at zero through 2013 arrested the markets’ free fall (and has the added, noxious...Read More
Fed Fall-Out — or, “Trying to Avoid Bubble Baths” Quick, which of the following is currently a bubble? A. Stocks B. Bonds C. Commodities D. Housing E. Commercial real estate F. Precious metals (gold, silver, etc. ) G. All of the above Answer: hell if I know. And judging from what I read these days ....Read More
[Fill in Your Terms Here] Why is hail always the size of something else?” –George Carlin Here’s what’s on my list of hackneyed phrases that should disappear immediately: –“Soft patch,” “rough spell,” “bump in the road,” “economic headwinds,” and all related synonyms –“Extended period of time” –“New Normal” –“Oversold” (as in, “stocks are now oversold...Read More
Jumbo Mortgages for 4.75% The Federal Reserve anticipates that very low interest rates will be needed for an extended period. –Fed Reserve Chairman Ben Bernanke Mortgage interest rates have been so low for so long (2 years? 5 years?) that it’s no longer perceived as “new news” — but actually, it is. Namely, jumbo mortgages (over...Read More
Ben Bernanke’s Unintended Consequences The good news? Ben Bernanke has confounded naysayers, and proven that The Federal Reserve really can resuscitate (levitate?) the stock market — now up 85% from The Crash of ’08 lows. How? By printing money — lots and lots of money — and driving interest rates into the toilet (and keeping...Read More
An Open Letter to the Federal Reserve Chairman Dear Ben Bernanke (er, Santa Claus): Speaking for millions of my fellow investors, I want to thank you for all your efforts to date, uh, “supporting” stock prices. I/we are certainly better off for it (at least in the short run; in the long run, direct federal...Read More
