Tag

monetary stimulus

Fed: ‘Hurry to Buy Stocks Before They Crash Again’

Turning Keynes Inside Out “Markets can stay irrational longer than investors can stay solvent.” –John Maynard Keynes In light of The Federal Reserve’s unprecedented, going-on-six-year campaign of monetary stimulus, perhaps the question to ask isn’t, “why are stocks trading at record levels?” Rather, it’s “why aren’t stocks even higher?” My answer:  because at least some...
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Bubble Dynamics: Greed Effect > Wealth Effect

Vertiginous Stocks “Dear Jack:  Don’t buy a single vote more than is necessary. I’ll be damned if I’m going to pay for a landslide.” —JFK quoting a made-up telegram from his father, Joseph Kennedy, after he first won election to Congress. Here’s a thought:  overdoing the stimulus — and rocketing stocks higher — can backfire, blunting (or worse)...
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Flumoxxed by the Fed[eral Reserve]

The “Alice in Wonderland” Stock Market; or, Figuring Out What the Fed Will Do  “The next level analysis is [determining] whether . . . good news is bad (meaning less accommodation) or good (economic improvement); or conversely, whether bad news is good (meaning more accommodation) or bad (economic deterioration).” –Barry Ritholtz, “Predicting Jobs Data is Hard...
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Pulling the Plug on Paul Krugman

Shackling the Bond Vigilantes In a world where pundits divide into those who think the federal government should be doing more to help the economy, and those who think it’s already done (way) too much, economist and New York Times columnist Paul Krugman lands squarely in the former camp. In fact, you might say that he is...
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