The Fed is raising rates, forecasting more hikes and the stock market is falling. Fed Chair Powell says he can’t promise a soft landing. Pundits are peering into the future expecting the stock market to continue down. The Fed proclaims the days of easy money are behind us; many expect bond defaults and a slowing of the business cycle. I […]
» Read moreThe public is up in arms, and rightfully so. Gas prices are going through the roof with no end in sight. I don’t ever remember spending $100 to fill the tank on my Honda minivan. This is nuts! Wolf Street provides a graphic. Supply is government restricted, prices are rising, affecting the cost of everything we buy, not just our […]
» Read moreWell, the Fed finally did it! They upped interest rates ½%, the most since 2020. Yahoo Finance reports: “Prices have been rising at their fastest pace in 40 years – hitting 8.5% year over year in March as the U.S. comes out of the pandemic.” Wolf Street weighs in on food prices: “Food at home” inflation spiked by 1.0% for […]
» Read moreIn 2010, The Huffington Post reported: “WASHINGTON (AP) — Federal Reserve Chairman Ben Bernanke told a panel investigating the financial crisis that regulators must be ready to shutter the largest institutions if they threaten to bring down the financial system. ‘If the crisis has a single lesson, it is that the too-big-to-fail problem must be solved,’ Bernanke said Thursday while […]
» Read moreBest of Dennis… Dennis is tending to his health again but is on the mend and hopes to be back writing very soon. Here’s another article that is very relevant today and worthy of a re-read. This article was originally posted on August 19, 2021. The Jig Is Up! “Today Congress is constantly besieged by minority groups seeking benefits from […]
» Read moreImagine a bank creating unlimited funds to lend, earning billions in fees and interest, with no worries about the borrower defaulting. It’s happening today – big time! This week’s reading stack began with a Wolf Street article, “Deep-Junk-Rated Carvana gets $4.5 Billion from New Investors, after Shares Collapsed by 79%….”. Despite regularly losing money and a deep junk bond rating, […]
» Read moreWhen the Fed bailed out the banks in 2008, interest rates dropped to historic lows. Many retirees were heavily invested in CDs and quality bonds earning a safe 6% interest, paying their bills, and enjoying their golden years. Overnight, trillions in CDs and bonds were called in, savers lost a major portion of their anticipated income as interest rates dropped […]
» Read moreFamed philosopher Ayn Rand told us, “You can choose to ignore reality; but you cannot ignore the consequences of ignoring reality.” If you bury your head in the sand long enough, you will eventually get bit in the ass…. Inflation has been skyrocketing and the government/media can no longer ignore it. John Williams, at Shadowstats.com calculates inflation using the same […]
» Read moreLast fall the Fed said it began “tapering” the amount of debt securities they were buying. This Wall Street on Parade (WSOP) headline reports; “Since the Fed Announced It Was ‘Tapering’ Last November, It’s Actually Added $332 Billion in Liquidity with New Debt Security Purchases.” The Fed says one thing and does another; they continued buying debt at the rate […]
» Read moreIn a recent interview with Chuck Butler, we concluded, short of dumping the FED and a ballot box revolution, inflation is here to stay. Individual investors can control where/how we invest to protect our life savings. Chuck summed up his feeling about a market fraught with risk: “I recently had some bonds mature. These maturities brought me into a ‘Cash […]
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