Obviously, the Fed will cut today. Whether it be 25 or 50 bp, I’m leaning toward the latter but really, I’m not that vested in today’s decision. I’m positioned to benefit in the intermediate-term from the Fed’s obvious easing cycle. Whether that happens today or over the course of the next year isn’t important (and [...]
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 [...]
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 [...]
Any person who has ever interacted with dogs on a regular basis knows that you need to establish that you are the leader of the pack and that it (the dog) needs to follow you. Failing this, you will lose control, with varying destructive consequences (depending on the dog, of course). Back at the beginning [...]
Continuing with our blow-by-blow breakdown of Ben Bernanke’s testimony: A Congressman just pointed out that Bernanke made a bad prediction 7 months ago regarding the severity of the housing crisis while that Congressman was correct in his prediction that supply would reach 10 months. The politician then asked Bernanke what the impact would be, using [...]
Bernanke is testifying as I type this and he just made the suggestion that the Federal Government help the mortgage crisis by guaranteeing Freddie & Fannie’s exposure to allow those GSEs to buy and package more loans. Of course, they’ll underestimate exposure to possible losses from these mortgages and the taxpayer will be left holding [...]
