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Logical Thought
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My name is Mark B. Spiegel and I'm the Managing Member of Stanphyl Capital Management LLC. I can be reached at: mark (at) stanphylcap (dot) com. My Twitter feed is @markbspiegel
My company:
Stanphyl Capital Management LLC
My blog:
I don't have a blog, but here's a link to a WSJ article regarding my thoughts on the "flash crash"
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  • TimeOnTarget
    , contributor
    Comments (2816) | Send Message
     
    Mark --

     

    I appreciate you pointing this out -- very, very thought provoking. I don't really like it when SA topics get political, but I don't think that you strayed into that area. The low-key but earnest way you recommended it was fine and I think the tenor of Stockman's comments themselves were not really political: They point to an underlying structural problems that any investor needs to be informed about and make considered choices regarding.

     

    I must say I share a great many of the concerns he expresses. I think that they greatest asset that we have left is the stability and integrity of our capital markets. I do so hate to see government seemingly doing everything they can to undermine that institution with their absurd lack of fiscal restraint: The repercussions of losing the advantage of the position our capital markets and currency integrity put us in is almost unfathomable.

     

    Anyway, nice link. Thanks
    5 Oct 2013, 11:59 PM Reply Like
  • Logical Thought
    , contributor
    Comments (4583) | Send Message
     
    Author’s reply » Thanks for the nice comment!

     

    It's pretty hard for any open-minded person to claim that it's "political" to say that the Fed keeps blowing bubbles to clean up the detritus from its previous bubbles, as Bernanke himself has cited the Russell 2000, "asset prices" and "the wealth effect" as reasons to justify his policies. Meanwhile, certainly no one on either end of the political spectrum can deny that the greatest beneficiaries of this policy have been the wealthiest Americans, as the distribution of income stats are out there for everyone to see. The saddest part of this (to me) isn't that "the rich are getting richer" because I don't think that's relevant; i.e., "jealousy" is NOT a valid foundation for economic policy. Rather, the problem with this QE policy is that the Fed is trying to raise the rate of inflation at the same time that the vast majority of American workers have no "pricing power" in their wage negotiations because their jobs are exportable; thus, Bernanke's pro-inflation policies actually LOWER the living standards of the average American. In fact, one could argue that the disinflation in Japan over the past 20 years has actually been a great BENEFIT for the average Japanese citizen.

     

    It's also not "political" to point out that the U.S. is going broke, as the CBO is decidedly non-partisan and it's all just pretty simple math. The typical responses I encounter from so-called "progressives" when I point out this "inconvenient fact" to them is either "math makes my head hurt" or "let's change the subject." Unfortunately, most of our Republican politicians who understand this don't seem to be bright enough to do a good job of explaining it to the American people, but (and here I *will* get political) they need to focus on this issue instead of their beloved social policy interventionism.

     

    One of the things I like best about this speech from Stockman is that he doesn't hesitate to excoriate both the left AND the right, and in that regard I agree with him wholeheartedly.

     

    Again, thanks.
    6 Oct 2013, 07:26 AM Reply Like
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