While Fed Chairman Jerome Powell appears determined to bring inflation down to their 2% target, inflation is far from under control. Pundits predict Powell will continue raising rates until something breaks. Recently Silicon Valley Bank (SVB), (and others) bellied up and depositors were bailed out by the FDIC. What has to break for the Fed to declare victory over inflation? […]
» Read moreAs the market soared, pundits hawked their investment flavor of the day; “Don’t Fight The Fed!” Buy stocks based on the actions of the Fed, not the value of the company. Even forever unprofitable companies saw their stock prices skyrocket. Traders made a lot of money playing that game. Bill Bonner wrote, “After 1999, stocks rose for the wrong reasons; […]
» Read moreWhen the Fed bailed out the banks in 2008, flooding the system with trillions, you just knew high inflation would be the result. It just had to happen! The government jumped in, borrowing trillions more at historically low interest rates. Not willing to let rates rise to free market levels, the Fed simply created money for the government and put […]
» Read moreJanuary is time to look ahead for the year. Sadly, way too much depends on the Federal Reserve and world central banks. Michael Howell writes: “It has been a bleak year for many investors. Global investors have lost $23tn of wealth…so far in 2022. …. That is equivalent to 22 per cent of global gross domestic product” When bureaucrats create […]
» Read moreWhat is money? Baby boomers worry about retirement, workers never seem to have enough while politicians spend other people’s money recklessly to buy votes. Richard Maybury writes a terrific publication which I highly recommend. His recent issue grabbed my attention: (Emphasis mine) “Ever since President Nixon bamboozled the whole world by sabotaging the gold standard in 1971, there has been […]
» Read moreFed Chairman Powell tried to convince the public inflation was “transitory”. Eventually, he could no longer ignore reality. The Fed raised interest rates several times and vows to continue to do so, until inflation is stabilized at 2%. As expected, mortgage rates are skyrocketing, the real estate market is tumbling, along with the stock and bond markets. The Party’s Over! […]
» Read moreThe Federal Reserve raised interest rates another 3/4% and promises more increases until inflation is under control. Yahoo Finance reports: “Jerome Powell just warned that the US housing market needs a ‘difficult correction’ so that folks can afford homes again: “Higher interest rates translate to bigger mortgage payments – not good news for the housing market. But cooling down housing […]
» Read moreLast week we discussed the consequences of continued high inflation. It will bring economic devastation, the dollar would lose its status as the world currency, the destruction of the middle class, and likely another Great Depression. Chuck Butler outlined what happens if the Fed flinches and doesn’t do what needs to be done – quickly: “Soon after the Fed Heads […]
» Read moreSince I began my cancer treatment in 2019, my outside travel has been curtailed. Doctors, restaurants, and an occasional trip to visit family have been about it. The good news is now I have more energy and feel like getting out and doing fun stuff. I recently made a trip to our local Factory Outlet Mall. I used to enjoy […]
» Read moreAcademics have their code words when times get tough. Do we have high inflation? Are we in a recession, depression, or stagflation? Few people care what they call it, other than politicians who want to blame their political enemies and avoid responsibility. Both the disease and cure hurt people economically. The Fed says they target 2% inflation. When inflation started […]
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