Are you kidding, dear reader? After being the single largest buyer on the planet? Imagine what will happen to the bond market when investors realize that the Fed is selling! It’s not going to happen.
October 23rd, 2009 | Bill Bonner | 5 comments | ContinuedAll Posts Tagged With: "debt"
Investment Banks Making Money Thanks to US Government Bailouts
Meanwhile, the Bank of America is a real bank. With real mom and pop customers. And the poor moms and the poor pops are going bust. They can’t pay their bills.
October 20th, 2009 | Bill Bonner | 0 comments | Continued
Paying Off Debt is Like Dying…
Voters don’t like hearing about debt. Politicians don’t like talking about it. And economists don’t want to think about it.
October 19th, 2009 | Bill Bonner | 5 comments | Continued
IMF Report Concludes Aussie Banks are “Very Sound”…
The Guv also said he would not be too timid about raising interest rates. He believes the threat [of global financial calamity] has passed and that the bigger threat may well be inflation. That kind of tough talk sent the Aussie dollar right up to over 92 cents against the greenback. If it weren’t late fall, now might be the perfect time to take a trip to America and see how cheap things really are.
October 16th, 2009 | Dan Denning | 13 comments | Continued
A Flawed Theory on How to Manage an Economy During a Recession
Your editor spent last night in a discussion with a querulous and drunk Aussie over the stimulus. “It looks like it worked to me,” he said. “Only world economy still growing. GDP up. We’ve got China. Looks like Ruddy and Swanny know what they’re doing. You’re just a hack. You’ve never run a country. And you’re a Yank!”
October 13th, 2009 | Dan Denning | 100 comments | Continued
Federal Government is Sabotaging a Genuine Recovery
“Great time for US consumers, America is on sale,” says an item at YahooFinance. The “discounts are unbelievable,” adds a blogger known as Frugal Rhode Island Momma.
October 12th, 2009 | Bill Bonner | 0 comments | Continued
Warren Buffett: People Do Not Make Money by Betting Against the US Economy
What we saw was an over-stretched empire getting ready to snap. But we were also allowing ourselves to be lazy. Rather than deconstruct the capital structure of the world’s largest economy, we decided to sell the whole damned thing.
October 12th, 2009 | Bill Bonner | 5 comments | Continued
Can Governments and Central Banks Prevent More Credit Writedowns?
Are we changing our tune, then, about what to expect from markets? Not one bit. But the question now is timing. The collapse of 2008 was so severe because of the sudden reduction in leverage in the financial sector. As assets fell in value, the most highly leveraged firms (or lenders who raised money by selling debt) went out of business.
October 12th, 2009 | Dan Denning | 34 comments | Continued
Aussie Dollar is Crushing Long-time Rivals Like the Pound and the U.S. Dollar
One way to view a currency, we read somewhere recently, is as a national obligation secured by national assets. Those “assets” are loosely defined as economic growth (GDP) or the tax revenues a government can generate. A growing economy generates royalties and income taxes and demonstrates to international bond investors Australia’s ability to service interest and principal on debt.
October 9th, 2009 | Dan Denning | 18 comments | Continued
Obama Considers New Job Tax Credit
Hey, why not! They had such great success with the Clunker tax credit…and with the first time house buyer tax credit.
October 8th, 2009 | Bill Bonner | 4 comments | Continued