America's Economic Future – A Discussion By Ted Kavadas
One phrase that I have heard mentioned a few times is that the economic and market declines of 2008-early2009 created a “Opportunity of a Lifetime” to buy stocks, businesses, and other assets. I am not sure what reasoning is used to justify the “Opportunity of a Lifetime” phrase (and no reasoning has been provided). It would …
Ben Bernanke testified before a House committee on June 3. Although it doesn’t appear as if he said anything new or different from his previous public statements, I found one statement to be significant. It is bolded below: “We continue to expect overall economic activity to bottom out, and then to turn up later this …
My view on the stock market rally (as seen by the S&P500, often denoted on this blog as SPX) that began on March 6 (at ~666) and peaked on Friday (at ~951) is that it is a bear market rally. And it certainly has been generous, given the fundamentals of the economy. I think it is …
I saw this quote in Charles Schwab’s “On Investing” magazine, Summer 2009 page 6. It is attributed to Ben Bernanke: “Over the years, the U.S. economy has shown a remarkable ability to absorb shocks of all kinds, to recover, and to continue to grow.” I’m not trying to single out Ben Bernanke with regard to …
I saw this story in The Wall Street Journal a few days ago, titled “The New Resume: Dumb and Dumber” http://online.wsj.com/article/SB124328878436252195.html It says a lot about our current economic climate when people feel compelled to understate their credentials in order to appear more attractive for available positions. While it is unknown as to how widespread this type …
Readers of this blog may want to read a special comment; it is listed below and can also be found here: https://www.economicgreenfield.com/a-special-note/ Comment – Special As you will notice, much of my blog posts and writings point to a difficult and painful future resolve to our economic difficulties, or at least sound a cautionary note with regard …
Here is an interesting New York Times editorial regarding foreclosures. Please note that I don’t necessarily agree with many of the recommendations, but the editorial does a nice job of summarizing some of the problems: http://www.nytimes.com/2009/06/02/opinion/02tue1.html?_r=1 “Solving” our residential real estate problems is going to be most difficult, in my opinion. It is a very complex …
This was an interesting editorial in The Wall Street Journal a few days ago concerning the “redefault” rate: http://online.wsj.com/article/SB124338503008056785.html These statistics are problematical, especially if one believes the economy will stagnate or worsen from this juncture. It also raises the question as to the effectiveness of intervention measures on default rates and housing prices. Many of the current …
There is so much that can be said about GM’s demise, as well as how its bailout has been handled. It is rather mindboggling to realize that at its peak, it was the most powerful company in the world. I’ve been trying to recall how many times major stories have been published over the years about GM’s …
Here is a recent interview of Rep. Barney Frank on CNBC. I found the first few minutes to be interesting, as well as disconcerting in many ways: http://www.cnbc.com/id/30980892 What nearly everyone, especially the decision-makers in Washington, don’t seem to grasp is the risks inherent in large-scale market interventions. One question to ask might be, “If large-scale market …