On February 10th an editorial by Scott S. Powell appeared in Investor’s Business Daily titled “Greece’s Crisis: A Warning To Profligate U.S.?” The link can be found here. I am highlighting this editorial as it discusses many important issues, most of which I have previously mentioned on this blog. As well, it compares our current … Read more Editorial Of Note: “Greece’s Crisis: A Warning To Profligate U.S.?”
Here is a link to an interview today with Nouriel Roubini in which he discusses bubbles: http://www.cnbc.com/id/35078010 I would argue against those who believe that bubbles could start to form or that they are just beginning to form. I strongly believe that there are many bubbles in existence right now, and the implications of such … Read more Roubini Interview Concerning Bubbles
I would like to make a couple of comments regarding the speech Ben Bernanke gave on January 3. It was titled “Monetary Policy and The Housing Bubble.” (pdf) I could make a significant amount of comments regarding this speech, as I partly or fully disagree with many of the points presented. I will, however, briefly comment … Read more Ben Bernanke’s January 3rd Speech
As I, as well as others, have been frequently mentioning bubbles, I thought it would be interesting to post a few comments (excerpts) that Larry Summers made concerning their effects during his March 13, 2009 speech. I found these comments to be very interesting, especially in light of our current economic condition and prospects for Sustainable Prosperity. … Read more Larry Summers On Bubbles – March 13 2009 Speech
In my opinion, the existence of asset price bubbles is of paramount importance. I have recently written a few posts on the subject. I would now like to comment on a Wall Street Journal article from Monday titled “Economists Warn of Asset-Price Bubbles.” Here is the link: http://online.wsj.com/article/SB126074172673289729.html First, I would like to reiterate that I … Read more Article On Asset Price Bubbles
from the November 3 FOMC Minutes: “Members noted the possibility that some negative side effects might result from the maintenance of very low short-term interest rates for an extended period, including the possibility that such a policy stance could lead to excessive risk-taking in financial markets or an unanchoring of inflation expectations. While members currently … Read more Bubbles
One of the questions that frequently arises with Gold’s recent strong performance is “Is Gold in a bubble?” Before I make some comments concerning this question, here is a long-term monthly chart of Gold for reference: Chart Courtesy of StockCharts.com Anytime a security acts as strongly as Gold has, it is natural to suspect … Read more Is Gold Experiencing A Bubble?
Here is a link to a November 16 Wall Street Journal article titled “China’s Blunt Talk for Obama”: http://online.wsj.com/article/SB125826103009548975.html I found this to be particularly interesting: “Liu Mingkang, chairman of the China Banking Regulatory Commission, said that a weak U.S. dollar and low U.S. interest rates had led to “massive speculation” that was inflating asset … Read more Interesting Comments From Liu Mingkang