Possible Unintended Consequences of a Subprime Bailout

Wall Street is giddy with rumors of some sort of deal pending from the Treasury with mortgage lenders regarding the freezing of subprime mortgage resets. There’s a common sentiment among free-market conservatives that when government tries to fix something, they generally make it worse. I’m not a conservative but I’ve got to go agree in [...]

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Economic Dissonance

Michael Pascoe runs a daily podcast that focuses on the Australian markets. Yesterday’s morning podcast led off with (paraphrasing), “If anyone can figure out the American stock market, please clue me in.” There have been at least 2 or 3 closes in the last month or so where the market was down big and came [...]

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Sometimes All You Can Do Is Shake Your Head…

Markets just closed on a monster rally. For this week, at least, horrific news is sweet music as it locks in a Fed cut in December. Financials and tech led the way — energy slid on the drop in oil prices. I don’t want to get too wrapped up in day-to-day movements (and I may [...]

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Bullish on Oil

Bloomberg just ran an interview with a person from the IEA and the Council on Foreign Relations. The western energy organizations have been warning of supply constraints in recent months and the possibility of higher oil prices. This fellow was warning of $150/bbl very soon. While this fits with my research, here’s the kicker: this [...]

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Market Rally: Mirage?

I don’t believe this rally for a second: * The Case-Shiller housing price index showed the largest YOY decline since they’ve kept these records. While not at all unexpected, this is nothing but bad news for the US economy. As I said yesterday, Americans aren’t going to feel good for a while — I don’t [...]

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Blinders on Wall Street

Some of the “experts” on Wall Street remind me of another useless species, jazz critics. Some of these unproductive types spill much ink debating about whether this sounds like jazz or that doesn’t sound like jazz — it’s hard to find a more idiotic discussion. To paraphrase Miles Davis, once you can pigeonhole jazz and [...]

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