Money and Finance
- Hussman Weekly Market Comment: Out On A Limb - An Investor's Guide To X-treme Monetary And Fiscal Conditions
Government intervention in the U.S. economy is approaching the point where probable long-term costs exceed short-term benefits – straining to maintain the pace of extraordinary fiscal and monetary measures that have repeatedly nudged the U.S. economy...
- Hussman Weekly Market Comment: Why The Ecb Won't (and Shouldn't) Just Print
Here's something to think about. When we look at any stream of payments, the value is based on the whole long-term stream, not just the benefits received in the first few years. Those of you that are familiar with the dividend discount model, for...
- Grant Says U.s. Debt Crisis Contrived, Will Be `unstuck' (video)
July 18 (Bloomberg) -- James Grant, publisher of Grant's Interest Rate Observer, talks about negotiations between U.S. lawmakers over raising the federal debt ceiling and reducing the budget deficit. Grant also discusses the Treasury market, the gold...
- Bill Gross – March 2011 Investment Outlook: Two-bits, Four-bits, Six-bits, A Dollar
Many critics, though, including yours truly, would wonder whether Quantitative Easing policies actually heal, as opposed to cover up, symptoms of an unhealthy economy. They might at the same time ask simplistically whether it is possible to cure a debt...
- Gr-neam Reflections: 11/01/2010 - It's The Denominator
Thanks to Matt for passing this along.The substitution of federal debt for private debt is presumed to be the solution to the decline in credit demand. For governments who borrow in their own currency, however, this may over the next decade revive a problem...
Money and Finance
Demand for U.S. Debt Is Not Limitless - By Lawrence Goodman
Thanks to Will for passing this along.
The conventional wisdom that nearly infinite demand exists for U.S. Treasury debt is flawed and especially dangerous at a time of record U.S. sovereign debt issuance.
The recently released Federal Reserve Flow of Funds report for all of 2011 reveals that Federal Reserve purchases of Treasury debt mask reduced demand for U.S. sovereign obligations. Last year the Fed purchased a stunning 61% of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis. This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits.
- Hussman Weekly Market Comment: Out On A Limb - An Investor's Guide To X-treme Monetary And Fiscal Conditions
Government intervention in the U.S. economy is approaching the point where probable long-term costs exceed short-term benefits – straining to maintain the pace of extraordinary fiscal and monetary measures that have repeatedly nudged the U.S. economy...
- Hussman Weekly Market Comment: Why The Ecb Won't (and Shouldn't) Just Print
Here's something to think about. When we look at any stream of payments, the value is based on the whole long-term stream, not just the benefits received in the first few years. Those of you that are familiar with the dividend discount model, for...
- Grant Says U.s. Debt Crisis Contrived, Will Be `unstuck' (video)
July 18 (Bloomberg) -- James Grant, publisher of Grant's Interest Rate Observer, talks about negotiations between U.S. lawmakers over raising the federal debt ceiling and reducing the budget deficit. Grant also discusses the Treasury market, the gold...
- Bill Gross – March 2011 Investment Outlook: Two-bits, Four-bits, Six-bits, A Dollar
Many critics, though, including yours truly, would wonder whether Quantitative Easing policies actually heal, as opposed to cover up, symptoms of an unhealthy economy. They might at the same time ask simplistically whether it is possible to cure a debt...
- Gr-neam Reflections: 11/01/2010 - It's The Denominator
Thanks to Matt for passing this along.The substitution of federal debt for private debt is presumed to be the solution to the decline in credit demand. For governments who borrow in their own currency, however, this may over the next decade revive a problem...