Flubadub

Ignore the Hype - Gold as Currency is Dead

Get your facts straight:
It is no secret that the US is a country driven by debt. It now takes approximately $3.25 of total debt in the US to generate $1 of GDP, a significant increase from 1952, when it took just $1.30 in debt to generate $1 of GDP. However, in 1952, government debt—federal, state and local— was $244 billion and accounted for 55.1% of the $443.6 billion in total debt outstanding in the US. Today, government debt stands at $7.2 trillion but accounts for just 15.7% of the $45 trillion in total debt. Household debt today has a much larger impact on economic growth than government debt— at $13.6 trillion, it is almost twice as much as government debt, while in 1952 it was just one-third of government debt.
The Fed pumping capital into the market is no more then the Govt. now assuming private debt. The end result will be debt ratios that will return to those of the 1950's. This phenomenon is not creating something new. It is returning the economy to where it was.

Don't Be Fooled - Inflation is Coming

The concensus sounds like a gaggle of Libertarians espousing personal economic philosophy as the gospel then extrapolating that gospel to predict future scenarios.
It is no secret that the US is a country driven by debt. It now takes approximately $3.25 of total debt in the US to generate $1 of GDP, a significant increase from 1952, when it took just $1.30 in debt to generate $1 of GDP. However, in 1952, government debt—federal, state and local— was $244 billion and accounted for 55.1% of the $443.6 billion in total debt outstanding in the US. Today, government debt stands at $7.2 trillion but accounts for just 15.7% of the $45 trillion in total debt. Household debt today has a much larger impact on economic growth than government debt— at $13.6 trillion, it is almost twice as much as government debt, while in 1952 it was just one-third of government debt.
Todays infusion of money into the economy by the Fed. is nothing more then the assumption of private debt by the U.S. govt. It is not unpresidented. The capital infusion will simply place the debt ratios back where they were in the 1950's. This is not the stuff of gloom and doom. What it is is a total reputiation of laissez-faire capitalism. It should be. Laissez-faire capitalism has failed.

Pablo

Corporate Bond Market Grinding to a Halt

I recently bought Amex bonds. Also GE. Thought the price was right. Since I have no intention of selling until maturity should I worry? Listening to doom and gloom commentary leads one to believe that the "sky is falling". There are no low risk places to invest. I should stuff my mattress with dollars. Maybe the best investment is to take a survivalist course and hoard MRE's.

The 'Idiot's Market Neutral Fund' - Midyear Update

Funds come and go. They do well then they falter. If they overweight a sector haveing guessed correctly they prosper in the short run. If they are broadbased they move in lockstep with the S&P average. In the end the biggest benefit/detriment comes to those in the highest income brackets. Stocks held are not taxed until sold. They can be given to children who are not taxed until they sell the stock the taxable gain based on the time of transfer not the original purchase price. Of course dividends and interest are taxable at ones nominal tax rate so if you are in the 30% bracket there is a disincentive for purchasing taxable high div securities and gaining money market interest.