Some think of my book as just another rant against socialism, therefore a rejection of solutions that would involve extensive use of government. But sprinkled throughout the book are not-so-subtle hints of what actions to take and, equally important, which solutions could potentially prove harmful. What is being missed by nearly everyone in Washington D.C. [...]
Inviting a little bit of government policy to interact with private enterprise is like inviting a little family of rats to interact with a bakery. Before long, you’ve got more rat droppings than chocolate sprinkles atop your cupcakes. And that’s just the beginning… Every day, the rats are more numerous, more rotund…and more brazen. Every [...]
“You can take your loans and shove them,” the Hungarian economic minister, György Matolcsy, did not say. But that’s what he was thinking. Watch out. The Hungarians are trendsetters. They ran a budget deficit of 9% of GDP back in 2006. They got a $20 billion bailout in 2008 and have been living with austerity [...]
This past Friday, the Greek government warned its tax-dodging countrymen it has begun a roughly ten-day countdown until it will be coming after tax cheats with a vengeance. Desperate times call for desperate measures and, to get the money it’s owed, the tax authorities will start taking over and selling the Aegean island estates owned [...]
We’re less than three weeks away from the start of the Agora Financial Investment Symposium in Vancouver. And it appears our choice of a theme for this year – Assault on Enterprise: How to Invest in an Age of Rising Taxes, Wall Street Crooks and Government Boondoggles – is more apt than ever. It’s not [...]
Things aren’t going well for Fannie Mae and Freddie Mac. First, the Federal Housing Finance Agency told them to delist from NYSE, and now, the real price tag of fixing the agencies is coming to light. In an interview below, Anthony Sanders, a professor of real estate finance at George Mason University, who was called [...]
You’d think, by now, some fiscal restraint would be in order — in the U.S. and Europe. But it seems like on both sides of the pond, some politicians didn’t get the "belt-tightening" memo. Original Source
California and Illinois state budgets have been a mess for some time now, as you would expect when expenses are wildly in excess of revenues. Here’s the latest vivid example of how far off course they’ve gotten in Illinois… the estimated pension liability for just the 100 top school administrators is now about $888 million. [...]
Faith in Europe’s nearly $1 trillion bailout is sputtering considerably. The latest Bloomberg tally shows 73 percent of global investors polled think it’s likely Greece will still default. In addition, over 40 percent expect Greece to quit the euro. All that bailout sounds like money well spent, indeed. From Bloomberg: “‘There is clearly a risk [...]
Whether the world economy is fully globalized or not is a matter of debate, but it’s easier to say there’s a strong… stitched together… connection between US and European markets. Lately, it’s driven by the willingness of leaders in both regions to bailout failing banks, businesses, governments, and almost any other entity that would probably [...]
Matt Taibbi’s latest piece in Rolling Stone is about how Wall Street’s “flooded the Capitol with more than 2,000 paid lobbyists” to fight the Restoring American Financial Stability Act — which even veteran Congress members seem to recognize as a new level for the “intensity of the blitz.” Lobbying on behalf the regular folk are [...]
As I was packing up to go home yesterday afternoon, the euro (EUR) had moved beyond 1.24, and I said, “I wonder what’s got the euro so perky this afternoon”… Well, that “perky” feeling the euro had at that time was wiped out and more by fears that Spain’s problems are now going to take [...]
It may feel like the housing crisis is largely behind us, but the statistics show otherwise. Sales continue to slip in many areas, foreclosures remain at record highs, and late payments are still increasing. It turns out that the types of crimes that began the crisis continue to perpetuate it. Interestingly, it’s the FBI that’s [...]
The euro isn’t catching any breaks these days. It’s today fallen below $1.23, its lowest level since April 2006. NYU professor and Roubini Global Economics chairman Nouriel Roubini believes that the crisis in Europe is just getting started with Greece and more problems are already cropping up. Bloomberg reports: “The European Union’s 750 billion-euro ($931 [...]
The price action in the euro (EUR) yesterday, which has dominated the currency trading for a month now, was something out of the Twilight Zone… “Help, I’m slipping into the Twilight Zone; the place is a madhouse; feels like being cloned”… Yes… That Twilight Zone… While the other currencies from Norway and Australia, were getting [...]
International Business Editor Ambrose Evans-Pritchard has changed his stance on Greece. Previously, he’s supported the Greek bailout and wanted to avoid a “sovereign Lehman.” Today, he sees the “moral hazard rescue” for what it is, and now chooses to “flagellate” himself and “wear a dunce’s hat.” What prompted the turnaround? The wisdom he sees in [...]
Where do bad debts go after they die? On Monday, investors seem to have convinced themselves that they just disappeared…like Amelia Earhart or TARP funds. But by Tuesday, they began to worry about ghosts. As in the US, the specter haunting Europe is debt. In America, bad debt in the private sector – led by [...]
Front and center this morning… The 2-day tight trading range for the euro (EUR) was thrown to the roadside last night, and the single unit has fallen through the 1.26 handle. This is all due to the thought that, while the aid package is in place, it will take too long for the cost cutting [...]
As Europe and the IMF announce close to a trillion dollar rescue package, Megan… Source
That’s what the action in today’s stocks seemed to say. Here’s why that action was wrong. Original Source >>>
