All Posts Tagged With: "federal reserve"

What’s driving this market? A real recovery? Or central banks‘ fast and easy money? We’ll take a wild guess.

It’s not just the ‘US situation’ China and Australia have to worry about. It’s the whole damn planet. Growth in all the mature industrial economies isn’t just slowing. It’s going in reverse. Reverse growth is otherwise known as contraction, or more conventionally, recession.

The Fed can’t actually bring forth more resources, more real capital, more skill, more jobs or more output. They can only put out more paper money… give it to their friends… thus cheapening the money that everyone else holds.

Ben Bernanke announced that he would keep feeding the zombies until… well… until the economy goes broke or improves.

Manipulating the price of credit is how central banks cause asset bubbles. But popularly elected governments only become aware of a bubble when prices are high.

Ben Bernanke printed up dollars equivalent to about 15% of GDP and enabled the nation’s GDP to grow by 3%.

Many of the commercial wealth management firms in Australia are extensions of the Australian banks, just under a different label. And at the current pace, it won’t be long before the assets under management in the superannuation system exceed the assets on bank balance sheets. Which raises an interesting dilemma…

Psychology and sentiment are important in stock markets, but not as important as overwhelming negative evidence, including the following seven reasons to remain bearish.

Capitalism relies on a continuous cycle of capital destruction and formation. But thanks to multi-trillion-dollar meddling, the Western World sits atop a crisis that is incapable of attracting fresh capital.

The destructive portion of “creative destruction” plays a vital, therapeutic role. But the financial leaders of the US and the eurozone have zero appetite for creative destruction. Instead, creative denial is the order of the day.