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4ran5par3n4

4ran5par3n4
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  • The Equity Risk Premium Is Still High [View article]
    "However, I see no evidence that bond yields are artificially low. Bond yields are historically low because inflation expectations are historically low." - This doesn't appear to be true for shorter terms. Example, the 5-Year Treasury Constant Maturity Rate has been below the CPI most of the time period since 01/01/2010. It only exceeded ( up to .5%)for a only few months during 2013 ("Taper Tantrum").

    http://bit.ly/1t6p8Gn;category_id=

    That implies that ZIRP & QE have depressed bond yields for 5-year and shorter terms. It also lends support to the common assertion that bond buyers are taking greater risk by buying longer term bonds (yield chasing) thereby flattening the yield curve.

    Bond yields may be historically low because "inflation expectations are historically low" And because of sustained accommodative monetary policy.
    Jul 4 01:54 PM | Likes Like |Link to Comment
  • Inflation As A Deeper Concept [View article]
    "If you start with a hypothetical and highly stylized example of a household that devotes 10% of income to a generic energy good, after 20 compounded periods where energy prices grow moderately at 2% but income grows at only 1%, by the end of the study period the amount of income devoted to energy has risen to 12% of total income. Change the terms to a 3% price change for that same income stream, and by the end proportionality has grown now to 14.5%.".....
    "Such price erosion for given income also means forgoing spending in other areas or searching for substitutes. Both are downstream impacts of redistribution and almost never lead to positive economic outcomes in the aggregate"
    May 31 11:59 AM | Likes Like |Link to Comment
  • Russia's Dollar Reserves And Putin's Visit To China [View article]
    Apparently, China looks really good from Canada.
    May 17 12:44 PM | Likes Like |Link to Comment
  • Bond Prices Rise As Fed Tapers - Markets Perplexed! [View article]
    So, the Fed has not been able to effectively employ the Portfolio Balance Channel since the start of the Financial Crisis? The QE's and ZIRP have merely provided a surplus of liquidity to the domestic and global systems, and enabled managing the orderly "revaluation" of creditors' impaired assets (thereby restoring systemic stability)?
    May 8 01:37 PM | Likes Like |Link to Comment
  • 4 Reasons Businesses Could Begin Spending Again Soon [View article]
    From a song sung by an alcoholic, who likely died from a drug overdose - an appropriate metaphor for debt, QE & ZIRP excesses.
    Mar 22 11:25 AM | 2 Likes Like |Link to Comment
  • Is The VIX Calling A Top? [View article]
    " Ideally, China's capital markets would not be trusted with such global responsibility until they are more mature, however that is not the case and so we must deal with the realities of this situation. " - Ideally, the trusted and responsible USA wouldn't have caused the 2007-08 Global Financial Crisis. However, that is not the case and so now everyone must deal with the realities of the situation.
    Mar 20 12:12 PM | Likes Like |Link to Comment
  • Will Emerging Markets Come Back? [View article]
    A global New Deal to the rescue - we're saved. I don't need Jesus Christ after all.
    Mar 4 12:40 PM | Likes Like |Link to Comment
  • It's Time To Buy Chinese Stocks [View article]
    China, "..one of the cheapest markets in the world.." - yep, year after year.
    Dec 31 03:23 PM | 3 Likes Like |Link to Comment
  • Yes Mrs. Yellen, QE Is Creating An Asset Bubble [View article]
    "But you got to know she wanted the job badly and by all rights she shouldn't be judged to harshly for what is to follow as she certainly wasn't the Fed Chair when the Fed embarked on this strategy" -

    During the recent hearings, no one heard her say "Our policies may not work out, but I want the Fed Chair anyway." Assuming responsibility and leadership makes her subject to judgments, and rightly so.
    Nov 19 11:22 AM | 1 Like Like |Link to Comment
  • A Sobering Assessment Of Economic And Political Impacts On The Housing Recovery From The National Association Of Homebuilders [View article]
    Oh great, after the absolute and undisputed success and acceptance of “Obamacare,” the next serving of the "Better Bargain for the Middle Class” is comprehensive housing reform, aka “A Home to Call Your Own.” Please keep your visions to yourself Mr. President, you arrogant buffoon.
    Nov 4 11:24 AM | 3 Likes Like |Link to Comment
  • Self Interested Politicians Should Keep The Chinese Economy On Track [View article]
    " Names like Larry Summers, Ben Bernanke and Janet Yellen emerge as the economic Samurai needed to fight the crises caused by the excesses of capitalism and they are doing a brilliant job of dealing with them." - It's time for your quixotic warriors to fall on their swords - commit the ultimate tapering.
    Nov 4 08:32 AM | Likes Like |Link to Comment
  • Time Is Running Out [View article]
    "Time is running out" for any hopes of you appearing on a magazine cover relatively soon too.
    Oct 26 12:11 PM | 1 Like Like |Link to Comment
  • Stock Market Bubble Vs. Impressive Bullish Breakout [View article]
    " QE is maintaining low interest rates and redirecting flow of capital from Treasuries to other assets." and "QE has had little effect on the stock market....." - You forgot to add that stocks are not among "other assets," and thus "remove all doubt."
    Oct 22 04:08 PM | Likes Like |Link to Comment
  • The Investment Climate In 6 Points [View article]
    "Inflation is a pass through in economic models" - the style and substance of your post invokes an appropriate image of the human alimentary canal.
    Oct 21 03:57 PM | 1 Like Like |Link to Comment
  • Must Know Lessons From The U.S. Budget Battle For Next Time [View article]
    Meh, Meh
    Oct 20 12:52 PM | 1 Like Like |Link to Comment
COMMENTS STATS
125 Comments
90 Likes