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  • Do Dividend Yields Indicate That Stocks Are Undervalued? [View article]
    Are you suggesting the bubble in treasuries is about to burst? Because my thoughts have been that this is the Fed's current motive to force investments back into riskier assets.
    Sep 5, 2010. 01:02 PM | 4 Likes Like |Link to Comment
  • In Defense of Alan Greenspan: 'The Age of Turbulence' Revisited, Part 2 [View article]
    Thank you for writing this article and explaining how there is much blame to be shared by all. Presidents, congresses, bankers and the average Joe's on the street were very happy when asset prices were always going up, up and away. How quickly we forget the God-like status this man had when life was somewhat of a fairy tale. What is even more interesting to me is the high praise he was receiving from those who promote social liberalism. Surely, he was not considered a disciple of Ayn Rand at that time.
    Aug 29, 2010. 02:52 PM | 1 Like Like |Link to Comment
  • Should the Fed Take a Hike? [View article]
    A few years may turn into 25 years. The market crashed in '29 and finally returned to pre-crash levels in '54. Since then the followers of Keynes have been gloating, see it works. The answer of today will be the same. We will never know.
    Aug 29, 2010. 12:26 PM | Likes Like |Link to Comment
  • The Fed can print money - flooding banks with liquidity in an effort to stimulate growth - but it can't buy confidence - demand for the money - George Melloan says. One thing the Fed and the government are providing plenty of these days: uncertainty.  [View news story]
    One can only hope that we are nearing the end of "social liberalism", and a return to "classic liberalism". Individual liberty, small government that is only in place to protect personal properties, and free trade.
    Aug 24, 2010. 07:26 PM | 13 Likes Like |Link to Comment
  • McDonald’s Corporation or Yum! Brands, Inc.? [View instapost]
    YUM is better positioned for growth in China and India. They have done a better job of changing their menu to appeal to the local taste of those countries. YUM also has more franchises and planned openings in these two countries. MCD may get the nod as the better investment now, but I feel YUM may be the better for future growth and dividend growth. I have chosen to invest in YUM over MCD.
    Aug 22, 2010. 09:21 PM | Likes Like |Link to Comment
  • Dr. Keynes Killed the Patient [View article]
    I guess we now know what Maynard meant when he answered his naysayers with "don't worry about it, we will all be dead by then".
    Aug 18, 2010. 06:49 PM | Likes Like |Link to Comment
  • Fed Avoids Finding an Exit Strategy [View article]
    $200 billion of treasuries may seem symbolic for this purchase, but what about next month and the next month and so on. This is just the next option the fed has with the fed fund rate near zero and no way to go lower. I am convinced the feds motive is to slowly burst the bubble in treasuries, and force the investors hand into moving to riskier assets. This notion of deflation is nonsense. How can you pump over a trillion dollars into an economy and deflation occur? I don't think this was in Maynard's playbook. I think the Fed should fear what they ask for. With the path they are laying out, it is possible for us to go from a very low interest environment to a very high one in a short period of time.
    Aug 15, 2010. 06:37 PM | 1 Like Like |Link to Comment
  • Does the Money Multiplier Exist? [View article]
    Such are the times we live in. An economy based on consumerism and borrowed money. At the end of Greenspans term as fed chief, and the beginning of Bernankes reign, the fed raised rates 15 times to 4.5 % up to June of '06. I am convinced the Fed burst the housing bubble on purpose. I am also convinced with the Fed's latest program to buy treasuries this week, their purpose will be to burst the bubble that exists now in treasuries to force investors into riskier assets and to spend on business and job creation. You can call it money multiplier, or velocity of money, or any other term. It is nothing more than spending money to make money. If one fears he will spend money to lose money, it is money that is never spent. You are correct, we can print all the money we want with no effect, because the money supply is sufficient now. It is a matter of money flow from one account balance sheet to another. Fear must be replaced by confidence. You may state that Milton Friedman's theory was baloney, but one thought of his I agree on is his statement that the Fed always gets it wrong.
    Aug 15, 2010. 12:13 PM | 2 Likes Like |Link to Comment
  • Can Treasuries and Stocks Both Be Right? We Think Not [View article]
    The stock market needs volume on days like today. I don't see this changing until we have a reversal of the inflows into bond funds, and the shorts start getting haircuts.
    Aug 2, 2010. 07:21 PM | Likes Like |Link to Comment
  • Is Wall Street Undervaluing American Oil Companies? [View article]
    A well written argument for the bullish case for oil demand going forward. Throw in the demand from the emerging economies and you are spot on. Also OPEC will keep supply artificially low to prop up prices to stay above $75 a barrell. When the world economies do return to solid growth, and money does leave the safety of treasuries, I believe this asset class will be the first to benefit.
    Aug 1, 2010. 12:31 PM | 5 Likes Like |Link to Comment
  • The China Property Bubble [View article]
    With China's desire to urbanize the rural population, and the governments willingness to stimulate, the demand will be in the formula. Unlike the US where affordability is driving down demand and prices, China will subsidize home ownership.
    Aug 1, 2010. 11:36 AM | 1 Like Like |Link to Comment
  • The China Property Bubble [View article]
    What is the percentage of home ownership in China vs the 70% ownership in US? I would expect it to be smaller and demand for housing may cushion the blow to any bubble.
    Aug 1, 2010. 09:23 AM | 2 Likes Like |Link to Comment
  • 5 Undervalued Basic Materials / Energy Dividend Stocks [View article]
    I also own SCCO and considering adding to my position. The mine in Mexico you mentioned has been closed for about 3 years, and just received a favorable ruling from the Mexican Supreme Court against the striking miners. It is the largest mine in Mexico, and company wide their copper reserves are among the largest in the world. Also SCCO is the lowest cost producer per ton in the industry.
    Jul 20, 2010. 12:03 AM | 2 Likes Like |Link to Comment
  • 5 Undervalued Basic Materials / Energy Dividend Stocks [View article]
    I think unrest is a major risk for most mining and other commodity stocks. SCCO does seem to have more labor problems than most. Only you can determine what risks you want to take for the reward.
    Jul 19, 2010. 10:52 PM | 1 Like Like |Link to Comment
  • Misunderstanding Modern Monetary Theory [View article]
    Your assertions may be correct, but see my posts below. The theories that are being stated can never be implemented in a free democratic society with as diverse political opinions as our society is blessed with. Only in an authoritarian type system, such as China, are these theories plausible. In our two party system, one party never wants to tax and spend, and the other party never knows when to stop. Also because of political favors, stimulus will never be directed where it should be. And we are in constant election cycles, where politicians can never lose their base.
    Jul 18, 2010. 09:42 PM | 2 Likes Like |Link to Comment