Banks Are The Key To This Stock Market Decline, & The Recession That Might Follow

Summary: After years of slow economic growth and rising asset prices in America, with investment gurus and economists predicting booms & crashes, events have again taken center stage. It's time to again pay attention to the data.  {2nd of 2 posts today} Risk markets are rolling over, high-grade bonds rise on a flight to safety. … Continue reading Banks Are The Key To This Stock Market Decline, & The Recession That Might Follow

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Did anyone predict the 2008 crash? Will anyone predict the next crash?

Summary: There are many who claim to have predicted the 2008 crash. Most (or all) in fact did not foresee the banking collapse that was at its center, that expanded a commonplace downturn into the worst global downturn since the 1930s. That tells us something important about our times, and what we an expect in … Continue reading Did anyone predict the 2008 crash? Will anyone predict the next crash?

Government economic stimulus is powerful medicine. Just as heroin was once used as a powerful medicine.

Summary: Today America passed an important fork in the road, an easy exit from the massive monetary stimulus running since the crash. If the economy continues its slow growth (well below the 2% stall speed) today might have been the last opportunity for an easy exit. Today also demonstrated the madness that infects us, as … Continue reading Government economic stimulus is powerful medicine. Just as heroin was once used as a powerful medicine.