Graham is Senior Market Strategist at OmniSans Research. He is co-editor of Gain, Pains, and Capital, OmniSans Research’s FREE daily e-letter covering the equity, commodity, currency, and real estate markets. Graham also writes Private Wealth Advisory, a weekly investment advisory that alerts... More
With all this blather about “green shoots” and economic “recovery” and new “bull market,” I thought I’d inject a little reality into the collective financial dialogue. The following are ALL true, all valid, and all horrifying…
I covered this topic earlier in my essay on Boomers. This latest essay from Business Week further illustrates the impact Boomers have had on the economy.
$400 Billion: Amount that will come out of annual U.S. consumption as thrifty boomers push savings rate from 1% to nearly 5%.
47%: Boomers share of national disposable income in 2005 before the bubble burst. Boomers contributed only 7% to national savings.
2.4%: Forecasted GDP growth over the next three decades as boomers ratchet back. GDP has grown 3.2% a year since 1965.
69%: Portion of boomers aged 54 to 63 who are financially unprepared for retirement.
78%: Boomers' share of GDP growth during the bubble years of 1995 to 2005
All of this will be evaporating as Boomers retire or attempt to retire. So long consumer spending bubble...
Thus far, analysis the financial collapse has been framed almost entirely in terms of money. All the research I’ve seen has delved into lending standards, securitization, inflation, interest rates, housing and the like.
Today, we’re going to complete our three part series re-evaluating the common arguments for inflation. If you missed the first parts of this series, you can review Part 1 here and Part 2 here.
Thus far we’ve shown that inflation has NOT yet gripped the market despite the public’s beliefs it has. Commodities remain nowhere near their 2008 highs (oil is currently entering a sharp correction) and the dollar is actually higher than it was BEFORE Bear Stearns. Both of these indicate inflation has yet to come home to roost.
So what’s the deal?
For starters, we need to address the most common misconception pertaining to the Fed: that of “money printing.” The Federal Reserve doesn’t actually “create” money. It issues debt and lends money out (like any bank), but it doesn’t just give money away.
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FIVE Reasons the Market Could Crash This Fall Pt 1
With all this blather about “green shoots” and economic “recovery” and new “bull market,” I thought I’d inject a little reality into the collective financial dialogue. The following are ALL true, all valid, and all horrifying…
More »Boomers as an Economic Force
All of this will be evaporating as Boomers retire or attempt to retire. So long consumer spending bubble...
The One Mega –Trend NO ONE is Talking About Pt 2
Yesterday we discussed the Boomer generation and how they’ve driven every economic/ financial development of the last 30+ years.
More »The One Mega-Trend NO ONE is Talking About
Thus far, analysis the financial collapse has been framed almost entirely in terms of money. All the research I’ve seen has delved into lending standards, securitization, inflation, interest rates, housing and the like.
More »Is Inflation a Fact… Or Just Opinion? Pt 3
Thus far we’ve shown that inflation has NOT yet gripped the market despite the public’s beliefs it has. Commodities remain nowhere near their 2008 highs (oil is currently entering a sharp correction) and the dollar is actually higher than it was BEFORE Bear Stearns. Both of these indicate inflation has yet to come home to roost.
So what’s the deal?
For starters, we need to address the most common misconception pertaining to the Fed: that of “money printing.” The Federal Reserve doesn’t actually “create” money. It issues debt and lends money out (like any bank), but it doesn’t just give money away.
More »Is Inflation a Fact… Or Just An Opinion? Pt 1
We need to seriously re-assess the threat of inflation.
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