Marvin Clark

http://fixedincomedaily.blogspot.com/

13 Comments

    • AmEx Misses: The Bear Trap Thickens [view article]
      bearfund - I agree America is technically broke. It took dozens of poor choices over many years for us to sink to this level. But, how do we fix it? I don't endorse inflating our way out of this problem. Cutting taxes isn't a solution either.

      De-leveraging this economy will return asset valuations to reasonable levels. That is currently underway. And, that will inflict major pain; so be it. But, unless you know of a different economic model to employ to return long-term stability to our financial system, what worked in the great depression is a good place to start. It's not perfect but what is?

      Whether economies are expanding or crashing, profits can be made. Chasing profits to the point of killing the goose laying the golden eggs is reckless.       Jul 23 03:29 PM
    • AmEx Misses: The Bear Trap Thickens [view article]
      iThinkBig - After 30 years of trickle-down economics destroying sound and successful post WWII American capitalism, going back to a more balanced Keynesian/Monetarism approach may save the day; again. Jul 22 06:33 PM
    • AmEx Misses: The Bear Trap Thickens [view article]
      lounge707 - AXP represents both type of consumer. Noted. Jul 22 03:12 PM
    • AmEx Misses: The Bear Trap Thickens [view article]
      CLH - I'm addressing their future revenue. I have not seen any data on falling food prices. We should all be concerned if the advance or decline in equities is controlled by a $25 price change in a barrel of oil. Jul 22 03:09 PM
    • AmEx Misses: The Bear Trap Thickens [view article]
      buyitcheap - It bodes poorly for this consumer driven economy. AXP represent consumers with greater disposable income. Jul 22 03:00 PM
    • Bill Gross To 'President' Obama: Double The Deficit [view article]
      During the great depression of the 1930's, Congress repealed prohibition on alcohol and tax it.

      I agree with Bill Gross that it's time to dust off Keynesian economics and repair some of the damage our economic and industrial infrastructure has endured the last 30 years.

      Maybe, we should even seriously consider legalizing and taxing marijuana. In addition to a reduction in law enforcement outlays, thus, easing budget pressures, and replacing tax revenue for falling property taxes, there are limited medical benefits, as well.

      When you are facing a 1 trillion dollar problem, no solution should be off the table.       Jul 01 07:51 PM
    • How Much Inflation Will We Have to Endure? [view article]
      bearfund, if you go back to the March 17th lows in treasuries, investors were scared as hell that the end was near. That will produce the correct environment for a drop in yields. and, our financial system isn't out of the woods, yet.

      Also, remember as late as February 2001, The treasury Dept. suspended the issuance of the 1 yr t-bill because of the balanced budget in those years.

      Even if a new solution is engineered to balance the budget the temptation to cut taxes or re-distribute wealth will arrest its existence.       Jun 17 10:43 PM
    • How Much Inflation Will We Have to Endure? [view article]
      LordDarley, my definition for inflation is too many dollars chasing too few goods. Real Estate was a local purchase. Cheap credit (too many dollars) pushed up prices. Tighter underwriting standards is reversing the pricing not the supply.

      Stock averages are not falling more than 10% - 20%, before rallying back up, because foreign investors will buy US stocks at huge currency exchange discounts. Too many dollars...       Jun 16 02:55 AM
    • How Much Inflation Will We Have to Endure? [view article]
      CLH and others, that's why the marketplace is full of different opinions. I reject Larry Kudlow's supply-side economics. Many people are these days. Jun 16 02:41 AM
    • How Much Inflation Will We Have to Endure? [view article]
      Will Rahal, that could happen, but, in the 1973-1975 recession, inflation hibernated until the next growth cycle. From 1976 until the next recession, inflation became a monster. Jun 16 02:33 AM
    • How Much Inflation Will We Have to Endure? [view article]
      lblaine, you are correct. In a 100% fixed income portfolio, more than 5% needs to be reallocated. This essay makes the point that the deflationary investment environment has been overtaken by inflation, therefore, we must now diversify away from long-term, fixed rate bonds. Jun 16 02:27 AM
    • How Much Inflation Will We Have to Endure? [view article]
      196714, there are ultra-conservative investors that will only trust US Treasury obligations. For them, only TIPS wll do. Jun 16 02:20 AM
    • How Much Inflation Will We Have to Endure? [view article]
      Quaker, when I propose TIPS to replace municipal bonds, I'm speaking over a ten year period or more. In 1990, an 8 3/4 treasury bond was issued below par. Was that a good deal or a bad deal? Jun 16 02:14 AM
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