Einhorn writes a comprehensive piece on why too much of a good thing—like QE—can be destructive, and result in a sluggish rather than vibrant economy. Continue reading
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Investment and Investing
“Dr. Doom” Marc Faber stated, “Somewhere down the line we will have a massive wealth destruction that usually happens either through very high inflation or through social unrest or through war or credit market collapse,”… Continue reading
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US retirees are facing difficult times ahead—over 30% of US workers have less than $1,000 saved for retirement. Defined-benefit plans are down to 20% from over 60% in 1983. Continue reading
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The destruction of the developed world’s economies and financial… Continue reading
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Last year was not a good one for the world’s stock markets. After twelve years of the new century, markets around the world remain down. Many are not only below their highs over the past decade, but are lower than where they started in 2000. The past 12 years have been good, however, for precious metals, energy and commodities. Gold is up 440% since December 1999. Continue reading
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“For 2012, in the face of a delevering zero-bound interest rate world, investors must lower return expectations. Two to five percent for stocks, bonds and commodities are expected long-term returns for global financial markets that have been pushed to the zero bound, a world where substantial real price appreciation is getting close to mathematically improbable. Adjust your expectations, prepare for bimodal outcomes. Continue reading
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Brokerage firms are required by law to maintain segregated accounts holding all client assets, including stocks, bonds, mutual funds, money market funds and cash. The law was passed after the 1929 crash to make sure… Continue reading
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$15,000 billion in ghost assets have gone up in smoke since last July, and this process will continue in 2012. With a 50% discount on Greek government debt in the offing, the global systemic crisis… Continue reading
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Can you can solve a debt crisis with more debt? Policymakers have been trying to do it ever since 2008, with an assorted array of ammunition: 0% interest rates, QE, debt write-offs for Greece, bank recapitalizations for the Europeans and the leveraging of their EFSF. Continue reading
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King World News interviewed Martin Armstrong, founder of Princeton Economics International, Ltd. (PEI) on what the future holds for investors. Armstrong discussed what triggered the 1987 crash: dizzying interest rates led to tremendous amounts of capital coming into the US from overseas, driving up the dollar. An international movement began to force the greenback down. Continue reading
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The international experiment in fiat currency is failing. Today the euro, one decade old, is suffering the consequences of poor financial management and Europe is on the brink of failure. The Eurozone and the euro may not survive the present crisis; in order to cope with the PIIGS nations, the Eurozone bailout package has ballooned to over €400 billion. Continue reading
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In April, the Financial Stability Board (FSB) an international super-regulator, wrote about the potential financial stability issues arising from recent trends in exchange-traded funds (ETFs). Continue reading
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Marc Faber of The Gloom, Boom and Doom Report thinks the world’s economic situation is worse now than in 2008. Fiscal deficits have exploded, he says, and the political system in the US and Europe has become completely dysfunctional. Continue reading
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Inflation and expected inflation are arguably the major determinants of interest rates. If the bond market seems to react to signs of growth, as it often does, that is because the bond market—and the Fed—continue to think that growth and inflation are linked: more growth increases inflation risk, while less growth reduces it. Continue reading
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Exchange-traded fund (ETF) sales have risen sharply in recent years as they are seen as a cheap means of gaining exposure to a wide range of assets. Ian Cowie, of the Daily Telegraph in the UK, takes a look at whether or not this sector is a bubble which is about to burst. Continue reading
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