bubble

Bill Gross, the founder of PIMCO and manager of the world's largest bond fund, has just released his most recent Economic Outlook. In it, he takes a tack regarding the fix to the present turmoil in the markets with which I disagree.…

There seems to be a blame game making the rounds in policy circles these days in which Asia is at fault for the credit crisis and economic downturn. The meme goes like this: Everything was fine until the Asians started manipulating their…

The consensus is coming down on the bearish side for U.S. government bonds in 2009. There is ample reason to believe that Treasuries will be an asset class to avoid this year. Yet, as I argue in a post a few days ago, "rates can go to…

David Rosenberg has been one of the voices of reason warning of excesses during the recent boom and predicting the unraveling to which we are now witness.  I have quoted him liberally here.  There is a very good piece on Rosenberg in the…

I have been arguing for some time that the credit bubble has been replaced by a government bond bubble because much of the liquidity pumped out by the world's central banks is not going to increased lending. As this money must be invested…

With Treasury securities at all time lows you get the feeling fundamentals is not the only thing driving the rally in U.S. government bonds. After all, the Fed has been lowering interest rates and showering the financial sector with money.…

The yield on all U.S. Treasurys securities are at historic lows. The 3-year T-bill and the 1-year T-bill have both actually sported negative yields -- meaning investors are paying the U.S. Governemnt to borrow money from them. This is the…

Recently I wrote a post which claimed that Keynesian stimulus is what we need in the global economy right now. These ideas are considered heresy in Austrian School circles because trying to stimulate the economy out of recession only puts…

Caroline Baum had a good column today at Bloomberg in which she suggests central banks consider asset prices in monetary policy going forward. In the piece she quoted William White, a former economist from the Bank for International…