Bloomberg.com – Greenspan Says Government ‘Activism’ Hampering U.S. Recovery Former Federal Reserve Chairman Alan Greenspan said a surge in U.S. government “activism,” including fiscal stimulus, housing subsidies and new regulations, is holding back the economic recovery. Increased bond issuance by the Treasury Department crowds out borrowers with the weakest credit ratings, Greenspan said in an… Continue reading Greenspan Speaks
<Click on graphic for larger image> The Economist – Oil and the economy: The 2011 oil shock More of a threat to the world economy than investors seem to think By contrast, the biggest risk in the emerging world is inaction. Dearer oil will stoke inflation, especially through higher food prices—and food still accounts for… Continue reading Crude Oil
Comment Jim Bianco was Bloomberg TV discussing crude oil and stocks. To view the interview click on the picture above. To view any of our recent interviews click here.
The Wall Street Journal – Food Prices Reach Record High World food prices rose 2.2% in February from the previous month to a record peak, the United Nations’ food body said Thursday, as it warned that volatility in oil markets could push prices even higher. The Food and Agriculture Organization price index rose by 2.2%—the… Continue reading Food Prices Continue Their March Higher
Historical Market Performance Under Various Deflation/Inflation Scenarios In this study, we look at how the markets perform under various deflation/inflation scenarios. This study stretches as far back as 1801 and covers stocks, “real” stocks, long term interest rates, “real” long term interest rates, short term interest rates, and the CRB. We also compare returns before… Continue reading Historical Market Performance Under Various Deflation/Inflation Scenarios
Caroline Baum: Goldman’s Model Evokes Blood-Sucking Leeches Macroeconomics really is stuck in the Dark Ages. Take “fiscal stimulus,” for example, the idea that the government can step in to fill the void when the private sector isn’t spending and boost economic growth in the process. Economists have been debating the pros and cons of fiscal… Continue reading Is Fiscal Stimulus The Answer?
Real Time Economics (WSJ Blog) – Ben Bernanke, Ron Paul Debate Dollar’s Definition Long-time Fed basher Rep. Ron Paul (R., Texas), who wrote a book titled “End The Fed”, squared off Wednesday with Fed Chairman Ben Bernanke at a hearing on Capitol Hill and wasted little time going after the central bank. “The real cause… Continue reading Bernanke vs. Ron Paul
Real Time Economics (WSJ Blog) – War of Words: Taylor Disputes Bernanke’s Description of Interest-Rate Rule Stanford University professor John Taylor, an outspoken critic of the Federal Reserve in recent years, has a new complaint: He says Fed Chairman Ben Bernanke is misrepresenting Mr. Taylor’s eponymous rule on interest rates…Mr. Bernanke said Tuesday that the… Continue reading The Battle Over The Taylor Rule
The Wall Street Journal – Fed Finds Climbing Costs Hit Shoppers Many manufacturers are passing along higher input costs to their customers, a sign that rising prices for wheat, cotton, iron, and other commodities could increasingly reach consumers in coming months, according to the Federal Reserve’s beige book survey. The report, a summary of economic… Continue reading How Much Are Margins Being Squeezed?
The Wall Street Journal – For Munis, Calm After Storm The battles roiling state capitals are being largely ignored by the municipal-bond market, which has been coasting through a period of relative calm. The stability of the market for bonds issued by state and local governments is in contrast to late last year, when a… Continue reading Munis
MarketBeat (WSJ Blog) – Goldman Sachs on ADP Private Jobs Report Econowonks over at Goldman Sachs are out with a couple quick thoughts on the better-than-expected ADP private sector jobs numbers for February, which were released this morning. As the ADP report is not affected by weather to the same extent as Labor Department’s nonfarm… Continue reading Goldman Chimes In On The ADP Report