2011

Financial repression leads to investors' leveraging up, moving abroad, moving out on the risk curve or moving into riskier asset classes. Apparently, Pimco is employing all of these strategies. Will it work, though? I say greater risk…

The policy response to the European debt crisis is critical and that response is function of European politics. There have been a number of developments in European politics that investors should be aware of.

The Fed justified the current round of quantitative easing “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate”. In effect, the Fed is trying to increase…

People who are staring at a tsunami of demand for commodities from the developing world and predicting a doomsday of $400 oil and $4000 gold are missing the longer-term retreating tide of demand as citizens of the developed world actually…

Google is loaded o the gills with cash, yet today they are pricing up a bond issue. he Financial Times is reporting that Google will raise as much as $3 billion of 3, 5 and 10-year money. Here's my question: why do this? Acquisition:…

There is a difference between economic growth from mere factor mobilisation and economic growth from increased productivity. One requires a lot more capital investment and debt than the other. If and when capital investment growth slows,…

If the facts go against us, we just dismiss them by selective editing or simply making stuff up to support our original thinking. When it comes to politics, when it comes to economics, the facts don't really matter. Human reasoning is not…

Arguably the 30 year US bull market in bonds is at a close. What's clear is that yields are exceedingly low and real yields are now negative. In effect bondholders are often paying the US government to lend funds when inflation is taking…

Below is the text from the letter from US Treasury Secretary Timothy Geithner to Congress via Harry S. Reid, Majority Leader of the Senate, informing Reid that the debt ceiling has been breached.

Frederick Sheehan argues that we are overleveraged, undercollateralized, and accentuating these unsustainable imbalances through economic policy to smooth out volatility.