“Adjusting for slippage” is the latest government fashion…and it is expensive. “Governments of the world’s leading economies have more than $7.6 trillion of debt maturing this year,” Bloomberg News reports, “with most facing a rise in borrowing costs.”
January 20th, 2012 | Eric J. Fry | 0 comments | ContinuedArchive for Eric J. Fry
Eric J. Fry has been a specialist in international equities since the early 1980s. He was a professional portfolio manager for more than 10 years, specializing in international investment strategies and short- selling. Mr. Fry launched the sometimes-abrasive, mostly entertaining and always insightful Rude Awakening.
How Central Bankers Attempt to “Cure” Insolvency
Whenever a central bank cannot provide direct, overt assistance to a specific insolvent investment bank or government, not to worry, a central bank can still provide indirect, covert assistance.
January 9th, 2012 | Eric J. Fry | 4 comments | Continued
Clinging to a Bankrupt Monetary System
“Europe is in one of its toughest — perhaps the toughest — hours since World War II,” German Chancellor, Angela Merkel declared yesterday. Who would argue with her? The Second World War crippled the European economy. The victors suffered almost as much as the vanquished. Nearly ten years after the war ended, the British were still rationing sugar and meat.
November 16th, 2011 | Eric J. Fry | 1 comment | Continued
Pea Shooters, Elephants and Government “Solutions”
“Do something” is fast-becoming the recurring whine of most financial market commentary. In fact, “Do something” is fast- becoming the recurring whine of almost all socio-economic expression in the Western World. From the rioters in Greece, to the Occupiers on Wall Street…
October 26th, 2011 | Eric J. Fry | 3 comments | Continued
Where the Wildest Things Are
Today, your California editor will pay homage to the classic picture books of our generation – Where the Wild Things Are, Green Eggs and Ham and Goodnight Moon – with a special “Financial World in Pictures” edition of The Daily Reckoning.
June 2nd, 2011 | Eric J. Fry | 0 comments | Continued
Where to Bury Your Gold
Yesterday’s big news wasn’t really news at all. Standard and Poor’s finally found the nerve to state openly what the rest of the world already knew: the Emperor is naked. The esteemed ratings service announced that America risks losing its triple-A credit rating.
April 20th, 2011 | Eric J. Fry | 24 comments | Continued
Making Friends With Precious Metals
The stock market continues wobbling today, as gold and silver continue soaring – gold has jumped almost $30 an ounce over the last two days to a new all-time high of $1,485.00, while silver has popped almost two dollars to a new three-decade high of $42.75 an ounce.
April 18th, 2011 | Eric J. Fry | 1 comment | Continued
Who’s Holding the Bag?
When disaster strikes, the initial victims are rarely the only victims. Collateral consequences fan out in surprising ways. Sometimes, the individual/entities who are left holding the bag are not the ones we would expect.
March 18th, 2011 | Eric J. Fry | 0 comments | Continued
A Birthday for the Bull Market
Two years old and just as cute a button!… Yessirree, that’s our little bull market! As of today, the S&P 500 Index has produced a dazzling total return of 103% during the last 24 months. The NASDAQ, for its part, has delivered a total return of 121%. Those are some great, big numbers for an itty- bitty bull market.
March 10th, 2011 | Eric J. Fry | 23 comments | Continued
Houses Love Inflation
Inflation is not the only reason to risk diving back into the housing market, but it may be the best reason. John Paulson agrees with this logic. Paulson is the hedge fund manager who placed various negative bets on various mortgage-backed securities during 2007 and early 2008.
March 7th, 2011 | Eric J. Fry | 4 comments | Continued
Outside Day Reversals and the Return of the Housing Market
The Dow Jones Industrial Average tumbled 168 points yesterday to 12,058. But the Blue Chip index did not merely tumble; it sustained “technical damage,” according to the folks who place credence in stock price charts.
March 4th, 2011 | Eric J. Fry | 0 comments | Continued
Long-Term Trends vs. Short-Term Corrections
“The dollar, yen and euro are all headed to zero…eventually,” our colleague Chris Mayer predicts. “But there is a journey of some length between here and there. In the between, you’ll be glad you own real assets like oil, natural gas and gold.”
January 19th, 2011 | Eric J. Fry | 0 comments | Continued
The Consequences of Risking Everything
In life, there are things, and there are treasures…Things are common. Treasures are rare. A few days ago, I lost one of my treasures – a cat named Uzi. Yeah, I know, Uzi was “just a cat.” But that reality did not make her any less of a treasure. In so many different ways, that little cat made me smile…
January 4th, 2011 | Eric J. Fry | 3 comments | Continued
The Half-Truth and Nothing But the Half-Truth
Transparency is essential in a free market. It enables market participants to make informed investment decisions. Unfortunately, in America’s “free market” economy, transparency is a latchkey child. It only sees the light of day when someone breaks down the door and carries it outside.
December 21st, 2010 | Eric J. Fry | 4 comments | Continued
The Price of Confidence
During the height of the credit crisis of 2008-9, the Federal Reserve and Treasury launched so many different lending programs and bailout facilities that it was hard to keep track of them all.
December 17th, 2010 | Eric J. Fry | 0 comments | Continued
