The Ultimate Refi Risk: US Govt

In a case of be careful what you ask for, Bloomberg looks at US Treasury yields, the government’s borrowing cost, running at record lows: Deficits Don’t Matter as Geithner Gets Lowest Yield. I am reminded of the famous Eagles song, “Hotel California” and the line about checking out but never leaving. But perhaps the more [...]

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Wall Street’s Recovery Still Unconfirmed

We are in the midst of earnings season and beyond the handful of companies with economic moats, there is little evidence to support Wall Street’s view that economic recovery is underway. The dichotomy between the financial world and the real world was one of the main culprits which led to the crisis of 2008. Unfortunately, [...]

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Reckoning Day for US Dollar Coming Next Year

No, Peter Schiff is not Japanese. The strategist predicting the dollar’s imminent demise is Daisuke Uno, who works at Sumitomo Mitsui Banking Corp. You can find details at Bloomberg but Uno is basing his prediction on Elliot Wave theory and claims this next move down in the dollar is the culmination of the super-cycle that’s [...]

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Wage Deflation

The dirty little secret of the George W. Bush’s post-9/11 economic recovery was that most Americans missed out. It is acknowledged that job creation during this period was sub-par compared to past economic booms. Many of the jobs that did spring up resided in lower-quality sectors like retail. While the headline numbers may show income [...]

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The Health Care Dilemma

A follow-up on last week’s post on the myth of American overconsumption, the Wall Street Journal has two extended articles which illustrate some of the depth of the US health care crisis. Readers will recall Michael Santoli’s assertion that most of the growth in consumer spending over the last few decades was due to rising [...]

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