Laws, Sausages — & Securitized Mortgages Laws are like sausages ” it is best not to see them being made. –Otto Von Bismarck To “laws” and “sausages,” now add “securitized debt,” circa 2004-2008. It turns out that Wall Street’s financial sausage factory was even more toxic and laxly run than previously thought. The latest chapter...Read More
“An Attempted Hypodermic Straight to the Economy’s Heart” A fascinating, even feverish dialogue is taking place right now — joined by some of the financial world’s most influential thinkers — concerning what will happen next week, and what economic consequences will flow from that outcome. The elections next Tuesday? Try, the Fed’s much-signalled intention to...Read More
Grantham: ‘Almost Criminally Inept Fed’ The Federal Reserve’s asymmetric policy of stimulating stock moves by setting artificially low rates and then leaving the bull markets, when overstimulated, to bubble over, is dangerous. It is probably the most dangerous thing to inflict on a peace time economy with two possible exceptions — runaway inflation and a...Read More
Waiting on Economists’ “Chants and Charms?” “A mighty good chant,” said the King, looking very pleased. Are you sure it will work?” All the magicians nodded together. “But,” said the King, looking puzzled, “How long will it take?” “Be calm, oh, Sire, and have no fears,” chanted the magicians. “Our charm will work in ten...Read More
What’s an Investor to Do? [But] as long as the music is playing, you’ve got to get up and dance. –Former Citigroup CEO Chuck Prince Perplexed by a stock market that (inexplicably?) is once again on the rise — along with all manner of commodities (oil, gold, silver, etc.)? That, despite at best conflicting economic...Read More
Tapping Corporate America’s Cash Hoard to Reward Investors & Stimulate the Economy Money is like manure; it’s not worth a thing unless it’s spread around. –Thornton Wilder Let’s see if I’ve got this right . . . The economy is decelerating now because the federal stimulus to date has run its course, and additional federal...Read More
