A little sanity needs to be inserted to the conversation regarding the government shutdown and the debt limit. Let’s begin by eliminating one easy distraction: the government shutdown is not an actual “shutdown.” It’s a temporary minimization of government. The people furloughed (or temporarily laid-off) during this time will be paid their full salary for...Read More
Yields retreated significantly on the Fed’s recent announcement that it will likely keep its QE program rolling until January 2014 – the same time, coincidentally, when Chairman Ben Bernanke is scheduled to retire. (What a coward. A courageous man would begin untangling the mess he created before he left office. Instead he’ll leave that task...Read More
Oh what a difference a week makes. Just one week ago President Obama had virtually no way out of the mess he was about to create in Syria. But then on Monday, Russian leader Vladimir Putin gave him one. Putin is no fool. He knows that many Americans vehemently oppose U.S. military action in Syria,...Read More
Bond values continue to fall while stocks and gold hold steady amid an awful display of government mismanagement – action in Syria seems likely, the economy continues to limp along, and large government programs continue to produce results contrary to their stated objectives. First things first; recall that President Obama was against the Iraq war...Read More
The most important news came from the Middle East again this week, as it is becoming more and more evident that chemical weapons were used in the civil war in Syria. This was a “red line” President Obama warned the Assad regime not to cross. That statement now forces the hand of the president –...Read More
This week the Dow Average lost 2.2% and bond values continued to fall – but stock market strength and gold both added 4.5% in the trading week. While mixed messages and smoke and mirror economics are continuing themes in “the market,” recent activity actually makes a lot of sense. The chart below shows the most recent twelve months of...Read More
These are the dog days of summer and as usual nothing much has changed this week. And while little has changed today, something big is about to happen that could do what many pundits think the Federal Reserve’s QE program hasn’t. In a Wall Street Journal on-line article entitled: Small Business in IRS Sights, August 9,...Read More
The U.S. economy added just 88,000 jobs in March, proving once again that any talk about recovery is misplaced. Food stamp recipients, on the other hand, rose 1.8% year-over-year amid early released news of President Obama’s new budget that curbs Social Security benefits. Social Security is an entitlement to people who have paid into it for more...Read More
The big news this week was in regards to Gross Domestic Product (GDP), defined as the value of all goods and services traded in markets for a territory. In its most recent report on economic activity, the U.S. made a couple of changes to GDP calculations. First, the U.S. modified the chained period to calculate...Read More
Earnings season is upon us and stocks haven’t moved. Even so, the average is still inflated, strength is around fair value, and gold remains dormant. The Federal Reserve made news this week, again, about clarifying its public message regarding the termination of QE. More and more this Federal Reserve looks scared and uneasy about the...Read More
