As readers may know, Marshall Auerback is a portfolio manager and strategist, as well as a fellow of the Roosevelt Institute; David Franklin is a research analyst at Sprott Asset Management. Click here to view the segment. Enjoy!
Read more...When I was on C-SPAN the weekend before last, I got a call I didn’t quite know how to field. It was from someone who by his accent was obviously Indian. He claimed that Indians represented 35% of the managers in American companies, and that American visa restrictions meant that they were all going to […]
Read more...It is truly astonishing to watch how determined the economics orthodoxy is to defend its inexcusable, economy-wrecking performance in the runup to the financial crisis. Most people who preside over disasters, say from a boating accident or the failure of a venture, spend considerable amounts of time in review of what happened and self-recrimination. Yet […]
Read more...A fund manager who will go unnamed mentioned to me that he is putting clients into bank stocks because they are trading at or below book value. Now of course, individual stocks can and do always outperform the outlook for their sector, so there are no doubt particular banks whose stocks are cheap right now. […]
Read more...By Marshall Auerback, a portfolio strategist and fund manager who writes at New Deal 2.0 In a post titled “China Cuts US Treasury Holdings By Record Amount,” Mike Norman makes the excellent observation that while China is moving its money out of Treasuries, interest rates are hitting record lows. In other words, the sky still […]
Read more...This post first appeared on August 24, 2007 This credit contraction is still young, yet we already have the spectacle of a full blown seize up in the money markets which has central bankers flummoxed. Normally, you expect this sort of panic after a few major financial train wrecks and weakness in the real economy. […]
Read more...Even though 2010 is proving to be a much happier year than 2009 for carriers and ports, weak consumer sentiment and rising odds of further deterioration in the economy has the operators of the big West Coast ports, Los Angeles and Long Beach, worried that a solid July will not prove to be a precursor […]
Read more...An article at Caixin helps clear up a mystery that has plagued Western observers, including some readers of this blog: where is all the money that is stoking Chinese real estate speculation coming from? Accounts of individuals buying 3 or 5 apartments at prices way out of line with incomes with little in the way […]
Read more...By Richard Alford, a former economist at the New York Fed. Since then, he has worked in the financial industry as a trading floor economist and strategist on both the sell side and the buy side. As far as the laws of mathematics refer to reality, they are not certain, and as far as they […]
Read more...The Fed seems to be exhibiting a pretty bad case of “if all you have is a hammer, every problem looks like a nail” syndrome, particularly when it has (or perhaps more accurately, had) other tools at its disposal. In case you somehow missed it, global markets got a bad case of deflation heebie jeebies […]
Read more...By Steve Keen, Associate Professor of Economics & Finance at the University of Western Sydney, and author of the book Debunking Economics, cross posted from Steve Keen’s Debt Deflation. The record $6 billion profit that the Commonwealth Bank is expected to announce today is a sign of an economy that has been taken over by […]
Read more...The latest stunt from the Obama Administration on the housing front is a peculiar bit of theatrics at the margin. As Bloomberg reports: The Obama administration will offer $1 billion in zero-interest loans to help homeowners who’ve lost income avoid foreclosure as part of $3 billion in additional aid targeting economically distressed areas. The Department […]
Read more...If all politicians were this entertaining, the public might start sitting up and taking notice of what happens in DC.
Read more...Bloomberg tells us: The Federal Reserve’s decision to buy Treasuries and keep interest rates low will support “risk assets” without bringing down unemployment, said Anthony Crescenzi at Pacific Investment Management Co. “Low volatility tends to be good for the interest-rate climate,” said Crescenzi, who is based in Newport Beach, California at Pimco, manager of the […]
Read more...Economists have been rewarded all too well for fetishing numbers and mathematics. The self-conscious effort within the discipline to turn it into a science (a goal most real scientists would deem to be impossible, given the fickle nature of human behavior), which meant making it more mathematical, has resulted in economists being better paid than […]
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