From King “Bond Trader” to King “Bond Traitor”…?

We find it quite troubling to read such a forlorn commentary from such a respected, heavyweight investor as Bill Gross in his most recent Investment Outlook report. That the discounted NPV of our debt is $75 trillion is appalling and frightening. In Bill’s own words, “This country appears to have an off-balance-sheet, unrecorded debt burden … Continue reading

USA Inc.

There’s a looming question in and around Wall Street these days that has caught investor’s attention – would you buy the USA were it a company called let’s say, USA Inc.?  Mary Meeker’s 300 page analysis of America’s financials provides an eye-opening account into the health of our nation’s balance sheet.  Needless to say, Meeker’s … Continue reading

InvestorJabber: Bill Gross out does himself once again

Of all the purported pundits and experts we read these days, none is more exciting than Mr. PIMCO, Bill Gross.  His latest investor letter, Devil’s Bargain, is a harangue on the current state of the union, its lack of morality and thus fiduciary responsibility, and a call for the bond vigilantes to unite.  Below are … Continue reading

InvestorJabber: Marc Faber, Honest Dr. Gloom & Doom

His honest and brash criticism of President Obama not withstanding, Marc Faber deserves the center-stage for his matter-of-fact approach to the entire global recovery, especially his take on Treasuries. In the long-run, for sure US Treasurys and most government bonds are a suicidal investment. But as a shorter-term timeframe, and I think for the next … Continue reading

Krugman to China: Take our debt and Shove It

China, Japan, America Since the heated debate between he and Niall Ferguson died down, Paul Krugman has managed to find another enemy upon which to focus his passionate efforts.  Defeating this formidable opponent, China, though will take serious political will from Treasury Secretary Geithner and the Obama Administration.  They can and should take notes from … Continue reading

InvestorJabber: Nigel Gault on the bleak recovery

U.S. Economy “Extremely Weak” and “Losing Momentum,” Says Economist Nigel Gault

Dr. Doom and the Doomsday Scenario

Roubini says the Fed is “running out of policy bullets” Banks are “sitting on” $1 trillion of excess reserves and cutting the interest rate on excess reserves to zero from 25 basis points isn’t going to make them lend money, Roubini said. Additional quantitative easing through purchases of securities also won’t jumpstart economic growth, he … Continue reading

InvestorJabber: Gary Shilling on Deflation

Deflation’s Coming, Says Gary Shilling, And It’s Going To Clobber The Stock Market Why is Gary still expecting deflation? Because consumers still have way too much debt, and this debt will take decades to work off.  Also, consumers are saving money again, which means they aren’t spending it.  Banks have plenty of cash and reserves, … Continue reading

InvestorJabber: PIMCO’s Outlook & Authority

Vigilante on the move Pimco’s Gross: Better Uses for Government Spending “Capitalism depends upon final demand and that if there ever comes a time when population growth slows, then the world’s most efficient economic system will be tested,” he wrote. Gross Rolls Down Curve for Non-Normal Bond Returns “What we think is most attractive is … Continue reading

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