The Smart Bird – He Knew
We are in a hostile investing environment with poor long-term support for the current prices in the markets. The stock market is simply riding the Fed’s largest intervention in history. And every wave ends the same.
Recent Posts
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Doug Noland: The Scourge of “Whatever it Takes” Monetary Mismanagement
The global Bubble has been pierced, though unprecedented monetary inflation only exacerbates the epic divergence between inflating asset prices and deflating economic prospects. As I’ve written over the years – and as demonstrated rather conspicuously in March: contemporary finance seems to operate miraculously – so long as it’s inflating. It just doesn’t work in reverse. These days it’s even more frightening to contemplate how this all ends. The Scourge of “Whatever it Takes” Monetary Mismanagement.
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TSP Smart: Don’t Buy Stocks About to Get Wiped Out
It appears there are a lot of investors who do not know that stock prices get wiped out in bankruptcy.
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TSP Funds: False Confidence Threatens Survival
Most retail investors have not experienced stocks and corporate bonds being wiped out in a restructuring. It will come as a shock to many. The reason a few mega companies are pulling the SP500 higher is a defensive move away from this restructuring risk.
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TSP Funds: Instability
Use common sense and look around. Earnings and cash flow determine stock prices after the corporate buybacks go away. The Fed is screaming DANGER and yes they “temporarily” provided liquidity (printed money) to halt the financial sell off. But they can NOT stop the economic damage that matters in the long run.
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Doug Noland: Global Bubbles are Deflating
Bubbles, at their core, are fueled by Credit – or “Credit inflation.” Asset inflation and speculative asset price Bubbles are a common upshot. At their core, Bubbles are mechanisms of wealth redistribution and destruction.
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Doug Noland: Schumpeter’s Business Cycle Analysis
Contrary to Milton Friedman and Ben Bernanke, Schumpeter didn’t view the twenties as the “golden age of Capitalism.” Depression was a consequence of egregious boom-time excess rather than the result of the Fed’s post-crash failure to print sufficient money.
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USAA Throws Customers Under the Schwab Bus
I just want to point out how Schwab and other investment companies are making money in the age of low fees and zero trade commissions – your cash accounts.
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Doug Noland: Going Nuclear
Instead of pinning the blame on monetary policy the last 30 years, they will triple down on the same monetary and fiscal policy that got us here… the top down approach (financial elite and corporations) that does not make it to those who truly need help – the American people – to keep the economy flowing.
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Doug Noland: Fault Lines
Now on a weekly basis, we’re witnessing things that couldn’t happen – actually happen.