Debt: Cheap and Easy

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Borrowing and lending is all the rage again. The financial crisis was five years ago this fall, and nobody is letting us forget it. According to ex-FDIC Chair Sheila Bair, financial soundness isn’t much improved. She says, “I think our system is still somewhat fragile, a lot more needs to be done.” Indeed… Wall Street […]

What’s Up With the Taper?

Like most of the financial world, I was closely watching the Fed on Wednesday. The market expected Bernanke to announce the “taper,” the first step of a gradual cutback of his $85 Billion/month bond-buying program. Boy, was the market wrong. The Fed instead proclaimed that it would continue its current policy apace. Judging from the […]

America’s economic myths exposed

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Mainstream economists have filled the minds of most Americans with economic myths that are constantly reinforced by the media and repeated on the streets. These myths are erroneous at best, sometimes based on half truths. Many of them are just false. We hear and read them every day: “inflation” is caused by rising oil prices; […]

How Many Times Can the Fed Play this Hand?

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It seems like every time the Federal Reserve meets stocks rally and the dollar gets hammered. But, I wonder… how much longer can this game go on? There are signs – it appears that quantitative easing is having less and less levitating impact on markets and that those effects last for a shorter time. How […]

Here we go again, European edition!

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 Europe Is Starting to Go Down the Tubes Again Europe has been embroiled in a sovereign debt crisis for more than two years now. We have read and heard about countless “fixes” to Europe’s problems during that time. But after simple analyzes it becomes apparent that all the solutions do not solve the underlying problem. […]