Double Barrel Policy – 4Q 2011 Market Outlook
The fourth quarter upon us has market analysts offering end of the year predictions. Analysts sit on both sides of the fence, placing bets on whether or when the market will overcome its recent swoon. We offer the more likely scenario given the global macroeconomic and political dynamics and headwinds. Since August, the markets have … Read more
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 … Read more
“The Ketchup Declaration” 10 years on…
We’ve made the point before that the Fed’s quantitative easing strategy is essentially its last and only weapon (after lowering yields to basement levels) in its monetary arsenal to inflate the economy out of the Great Recession. The POMO programs not only provided insolvent banks with adequate capital to stay afloat and keep the credit … Read more
InvestorJabber: The Great Debate Ensues
Some time over the summer when the debate between Paul Krugman and Niall Ferguson became a financial headline, we stood on the side of Ferguson, fearing the untenable expansion of debt would slowly but surely drown US economic growth, a fate most gluttons suffer at their own hands. What a difference a couple of months … Read more
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 … Read more
Lost amid the deflationary spiral: MS worries of inflation
We’ve stood on the inflation-side of the economic recovery for some time now. We’ve also stood in defense of our favorite financial historian’s, Niall Ferguson, economic outlook in his debate against the all-too academic, Paul Krugman. Looks like a corporate giant is joining ranks and the cause that promotes tackling the expanding debt situation first … Read more
Paul Krugman and Niall Ferguson debate on Fareed Zakaria GPS
Paul Krugman versus Niall Ferguson on Fareed Zakaria GPS
