The stated purpose of quantitative easing was to drive down interest rates on U.S. treasury bonds.But as U.S. News and World Reported noted last month:By now, you’ve probably heard that the Fed is purchasing $600 billion in treasuries in hopes that it…
Posts Tagged ‘David Rosenberg’
“The Fed No Longer Even Denies that the Purpose of Its Latest Blast of Bond Purchases … Is To Drive Up Wall Street”
January 14th, 2011 |
No Comments
Not Just “Inflation Versus Deflation” … We’ve Got “MixedFlation” and “ExportFlation”
January 6th, 2011 |
No Comments
Many people have made persuasive arguments for inflation.See, for example, my roundup from 2009, and Gonzolo Lira’s recent essay arguing that there is no political will to raise interest rates, and so commodities have become the safe haven investment (…
Why Is Unemployment Rising?
October 8th, 2010 |
No Comments
Today’s unemployment numbers are bad. See this and this.Why is unemployment rising? Because the government is doing everything wrong.One definition of insanity is doing the same thing again and again and expecting different results. Unless the gover…
Government Policy Caused America’s Unemployment Crisis
September 3rd, 2010 |
No Comments
The unemployment rate has risen again for the the first time in 4 months. I predicted a growing, long-term unemployment problem last year.Indeed, even after the government plays with the numbers to make them look better (using inaccurate birth-death …
No Wonder the Outlook for the Economy is “Unusually Uncertain” … the Fed is Killing It
July 21st, 2010 |
No Comments
Fed Chairman Ben Bernanke testified today that the outlook for the economy is “unusually uncertain”.That’s not surprising.Nothing has changed since I made the following points last December.High-Level Fed Officials Slam BernankeFed Vice Chairman Donal…
Chinese Stock Market Leads Commodities
June 6th, 2010 |
No Comments
David Rosenberg points out in his newest newsletter than the Chinese stock market leads commodities:Indeed, as the chart below shows, the Chinese stock market leads the CRB index with an 85% correlation and by 86 days (call it three months). China is a…
Deflation, For the Win
May 17th, 2010 |
No Comments
Given the massive printing of money by everyone from Ben Bernanke, the Europeans, and just about every region in the world, it would seem like an obvious assumption that massive inflation is about to hit.It probably will hit eventually. But for now,…
Deflation, For the Win
May 17th, 2010 |
No Comments
Given the massive printing of money by everyone from Ben Bernanke, the Europeans, and just about every region in the world, it would seem like an obvious assumption that massive inflation is about to hit.It probably will hit eventually. But for now,…
David Rosenberg: Gold is Rising Against ALL Currencies
May 14th, 2010 |
No Comments
In an important post today, former chief Merrill Lynch economist David Rosenberg writes:When we had the post-Lehman collapse, gold fell from $900 to $720 an ounce but it still managed to outperform other commodities and rise in many other currencies,…
Should a Stock Market Decline Stop Us From Breaking Up the Giant Banks or Fully Auditing the Federal Reserve?
May 7th, 2010 |
No Comments
As of 2007, the bottom 50% of the U.S. population owned only one-half of one percent of all stocks, bonds and mutual funds in the U.S. On the other hand, the top 1% owned owned 50.9%.From the San Francisco Chronicle:Half of America has only 0.5% …
Should a Stock Market Decline Stop the Goldman Prosecutions?
May 1st, 2010 |
No Comments
As of 2007, the bottom 50% of the U.S. population owned only one-half of one percent of all stocks, bonds and mutual funds in the U.S. On the other hand, the top 1% owned owned 50.9%.From the San Francisco Chronicle:Half of America has only 0.5% of th…
Greek 2 Year Yields 20 Percent, Italy Up 6 Basis Points, Portugal Up 7 Basis Points, Spain Up 27 Basis Points
April 28th, 2010 |
No Comments
It’s not just Greece and Portugal.As Simon Johnson reports:This is not now about Greece (with 2 year yields reported around 20 percent today) or Portugal (up 7 basis points) or even Spain (2 year yields up 27 basis points; wake up please) or even Italy…
No Wonder the Economy Isn’t Improving
March 3rd, 2010 |
No Comments
I’ve read countless news headlines recently about how economists are “surprised” over an “unexpectedly bad” economic indicator.But it’s not surprising at all. It’s no mystery.The government hasn’t taken the necessary actions, and has instead been doi…
What Do Rising Sovereign Credit Default Swaps Mean?
February 8th, 2010 |
No Comments
Here are the CDS of Greece, Portugal, Spain and the U.S.:[click here for full image]Rolfe Winkler argues that – in the short-run – the PIIGS countries (Portugal, Ireland, Italy, Greece and Spain) will slash their budgets and get bailed out by the EU.S…
“We’ve Never Seen this Before – Such a Huge Rally, and the Little Guy Is Out”
January 11th, 2010 |
No Comments
Joseph Stiglitz says that Wall Street is hyping up the economy to sell more stock.Has it worked?Well, the stock market certainly has rocketed up from its March lows.But many investors are still avoiding equities.As Vincent Deluard – a strategist for Tr…
Has America Suffered a PERMANENT Loss of Jobs?
December 3rd, 2009 |
No Comments
Some of the top economists say that America has suffered a permanent loss of jobs:JPMorgan Chase’s Chief Economist Bruce Kasman told Bloomberg:[We've had a] permanent destruction of hundreds of thousands of jobs in industries from housing to fina…
Robert Reich Confirms Permanent Destruction of Jobs in America
December 2nd, 2009 |
No Comments
Former Labor Secretary Robert Reich writes today:The basic assumption that jobs will eventually return when the economy recovers is probably wrong. Some jobs will come back, of course. But the reality that no one wants to talk about is a structural cha…
Questions for Bernanke’s Senate Confirmation Hearing
December 1st, 2009 |
No Comments
The Senate Banking Committee will be chatting with Ben Bernanke this Thursday to vote on his reappointment.Demand that the Committee ask the following questions for our esteemed Esteemed Chairman (and contact your own Senators also and demand that they…
“By All Relevant Debt Indicators, the US Fiscal Scenario Will Soon Approximate [that of] Countries on the Verge of a Sovereign Debt Defaultâ€
November 5th, 2009 |
No Comments
Josh Lipton points out:The American Enterprise Institute for Public Policy Research (AEI) published a paper indicating that “by all relevant debt indicators, the US fiscal scenario will soon approximate the economic scenario for countries on the verg…
U.S. Suffering Permanent Destruction of Jobs
October 5th, 2009 |
No Comments
America is suffering a permanent destruction of jobs.JPMorgan Chase’s Chief Economist Bruce Kasman told Bloomberg: [We've had a] permanent destruction of hundreds of thousands of jobs in industries from housing to finance.The chief economists for…