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Brave New Paradigm
For this generation of investors, the paradigm that is ingrained is the concept of “boom times, crash, boom time restarts”. The United States stock market is returning to relatively new highs due to the rally in stocks that has made some investors feel that “happy times are here again”. This has created the psychology that [...]
Money from Helicopters?
Federal Reserve Chairman Bernanke has openly admitted that he is printing money through quantitative easing based on his statements in the March 17th FOMC meeting. … To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserve’s balance sheet further by purchasing up to [...]
The Beginning of the End
The United States has been causing economic ruin in the global economy. For years, Americans borrowed trillions of dollars to finance lavish lifestyles. In the end, the desire for granite counter tops, plasma TVs and Mercedes Benz convertibles will be the catalyst that will put the United States on its knees. Since August of 2007, [...]
Dumb Investing: Investment Themes
The recent pulldown in commodity prices has not convinced me to reduce allocation in gold/energy. Investors bought into the “demand destruction” theory while the US Dollar went up in response to problems in the European Union. In herd-like fashion, hedge funds and institutions exited in tandem, triggering stop loss orders and heralding the “end of the commodities boom”. [...]
Gaming the System
Hank Paulson should go back to trumpeting his “Strong Dollar Policy.” He recently made comments in London regarding stability in financial markets during market crashes. U.S. Treasury Secretary Henry Paulson called for regulatory changes that would allow financial firms to fail without threatening market stability. The Treasury chief also proposed potentially requiring the White House [...]
