Aaron is right about America’s reserve currency status, and also there is the petrodollar in addition to the ‘flight to safety’ and other factors that are keeping interest rates low and the dollar high, all thanks to American exceptionalism. As bad as the US economy may seem, other countries are worse, although I am more… Continue reading Collapse Can Wait, Part 2
There are a lot of finance articles lately due to the hype over the film adaptation of Michael Lewis’ book The Big Short. Interview with Michael Burry, Real-Life Market Genius From The Big Short Is he a market genius or did he just get lucky? There is evidence of genius, in that between 2000-2008 Michael… Continue reading The Big Short: Market Genius or Luck?
The first rate hike in almost a decade is expected this week. Historically speaking, rate hikes are not always bearish for stocks, provided rates don’t go up too much too quickly. But because the fed has been dovish for the past three decades, not hawkish, that should be a concern. In the 90’s, the S&P… Continue reading Why Interest Rates Are Unlikely to Rise Much, If at all
There’s a lot of hand wringing about rising interest rates and how it will affect bonds and other income-based investments. There’s a lot of doom and gloom, too, predictions that the bond market will crash if the fed raises rates. There’s a few things to keep in mind: Bond ETFs and futures have mostly priced… Continue reading How Bonds Respond to Rate Hikes
From Christopher Cant-think-well: And Then The Market Crashed Anyway He writes: You might recall that incident, when George W. Bush said he had “abandoned free market principles to save the free market system,” don’t you? Lotta good that did. Last time I checked, it may have done a lot of good. The S&P 500 has… Continue reading Bailouts, Obama, and Debt
Found this gem on Amazon that somehow eluded my attention until today, The System Worked: How the World Stopped Another Great Depression In The System Worked, Drezner, a renowned political scientist and international relations expert, contends that despite the massive scale and reverberations of this latest crisis (larger, arguably, than those that precipitated the Great… Continue reading The System Worked: How the World Stopped Another Great Depression