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The Obama Stimulus Trap
Upbeat headlines have been everywhere in recent weeks, and they all seem to point to a single conclusion: The U.S. economy is in the early stages of a very rapid recovery.
In fact, when you peruse the news it’s difficult to come to any other conclusion. For instance:
- A number of key earnings reports have been much better than expected, and company executives buttressed those profit figures with positive comments about the next 18 months.
- The trading operations of Goldman Sachs Group Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE: JPM) both just reported record profits.
- U.S. housing prices rose in May for the…
Fixing the Monetary Unfixable
Dec. 1 (Bloomberg) — Treasuries rose, pushing yields to record lows, as Federal Reserve Chairman Ben S. Bernanke said the central bank may purchase Treasuries and target long-term interest rates to combat the deepening recession.
…and the monetizing of debt begins. I’ve talked extensively in several issues of Bourbon and Bayonets about the coming turmoil in long dates U.S. treasuries.
Many markets’(gold, oil, and forex) fundamentals have been identified and long term trends have been secured as an inevitability. The problem with these markets is timing out entry points. The government bond bubble is no different, and probably even more difficult in…
2Dec2008 | Oxbury Research | 0 comments | ContinuedMarc Faber says $250 billion dollar bailout is meaningless
CNBC:
U.S. Treasury Secretary Henry Paulson’s sweeping measures to bailout the financial system will probably fail, Marc Faber, editor & publisher of the Gloom, Boom and Doom Report, tells CNBC’s Asia Squawk Box.
"What I object to in all the bailout plans in the Western world is (that) they do not address the fundamental problem. And the fundamental problem is overleveraging,” Faber comments
Faber believes the U.S. budget deficit is going to stay at or above $1 trillion level because the government needs to print money in order to meet all the obligations they’ve made to rescue the financial…
Prepare to Profit From the Trillion Dollar U.S. Budget Deficit
The federal budget deficit hasn’t received a lot of press lately, what with all the worries about the U.S. financial system, the home mortgage market, and the rescues that might be necessary to save both. In fact, it’s a bad sign, since the Bush administration and the Democrats in Congress have joint responsibility for keeping the budget deficit under control, so they would both be crowing about it if they were doing a good job.
We already know the budget deficit is going to return to the $400 billion level – actually $410 billion – in Fiscal 2008, which ends…
25Jul2008 | Money Morning | Comments Off | Continued
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