Markets

As If you didn’t know this already, the wall of money being funnelled through Chinese banks is creating a massive speculative bubble in shares.  The Telegraph reports: Under orders from the government, China's banks have flooded…

The S&P/Case Shiller Home Price Indices for April 2009 were released today.  The Composite-10 and Composite-20 indices showed a 18.0% and 18.1% decline respectively, making the data less bad than in the previous month.  Nevertheless,…

On the same day that the worst economic growth numbers in the U.K. in 51 years, we also get some news that the British economy may be stabilising. Well, at least house prices seem to be stabilising as Nationwide reported a 0.9% increase in…

It seems like a long time off, but the Fed is going to eventually have to withdraw all of the excess liquidity it has created when the economy recovers.  However, doing so will prove tricky.  First, we have debt deflationary…

During Alan Greenspan’s tenure at the helm of the Federal Reserve, he was often accused of using monetary policy to target asset markets so as to keep the party going.  In short, Alan Greenspan was seen by many, including myself, as the…

The chain of events whereby easy money leads to malinvestment that impoverishes a society is now fully manifest in the United States.  You remember Victorville, CA where new homes were being demolished because it cost more to maintain them…

This is an interview in five parts via Morningstar on May 28th with the one-time reputed perma-bear Jeremy Grantham who has been sounding much more bullish of late (in a bear-market rally kind of way). Definitely worth a look. The five…

Here is the SEC press release regarding the fraud and insider trader alleged to have been perpetrated at Countrywide Financial, now a part of Bank of America (emphasis added):

Jim Cramer is not just calling a stock market bottom, but now he’s calling a housing bottom too.  In fact, he says go buy a house.  “Buy a house and buy Bank of America too?”  Cramer says: “This is patently obvious.” Take a…

Yesterday, I wrote “Some think this is a secular bull – a view I am not discussing in this post.  Others see this as a cyclical bull-market a.k.a bear market rally  I would put Jeremy Grantham in this category.  I would also…