A sell-off in U.S. Treasury securities is a virtual certainty and the only question is when and how, according to major Wall Street bankers. Wall Street banks are big holders of Treasury securities and could suffer large losses if there is a sell-off. Wall Street apparently believes that such a sell-off could be drastic unless […]
Serious questions have been raised regarding the accuracy of the United States reported 8.1 percent unemployment rate. In fact, one respected expert has stated that the real unemployment rate in the United States is probably 16 percent.
Rising bond prices are indicative of bond risk not safety, Wall Street Journal columnist Brett Arends writes in his article, “Bonds–Headed From Bull Market to Bubble?” He cites bond guru Bill Gross for the proposition that stocks are dead in terms of being suitable investments for long-term growth, and that bonds (historically considered safer than […]
History can teach us a lot about how to live better in the present. Rarely does one hear any reference to past mistakes or even the past successes that could best resolve our current problems. In the world of capitalist economics this country has decided to embrace the “me” rather than the “we”. Granted capitalism […]
Bond investors need to be cautious in the current environment. Many bond investors are scared of the stock market but hungry for yields that are higher than those offered by presumably safe Treasuries and are loading up on investment grade corporate bonds. With the global sovereign debt troubles and the U.S.’s fiscal cliff approaching, these […]
While sometimes perception and reality are the same, perception and reality are very different when it comes to the lifestyle expectations of ordinary Americans. Ever since World War II there has been the expectation of upward mobility for future generations. That is how we see ourselves. Realistically that is not true anymore. The rich are […]
While a lot has been said about the “fiscal cliff” in store for the U.S. when tax credits expire and the debt ceiling must be addressed, the fact is that there is a “global economic cliff” and the U.S. teetering on the edge with Europe and emerging markets like China and India. The idea of […]
For the 13 million jobless workers, life is about to get worse. For the economy, there will be less money in circulation. The Great Recession wiped out a great number of jobs, many of which will not be coming back. Recovery is slow to non-existent here and abroad. Recent Federal law mandating cuts in spending […]
There is concern growing within the municipal bond market as a result of the recent high profile bankruptcy filings by the California cities of Stockton, Mammoth Lakes, Compton, and San Bernardino. The concern is that bond payments will not be treated as a priority obligation. Municipal bonds have historically had the reputation for safety and […]
Many developed nations have borrowed and spent beyond their ability to repay their debt. Central banks around the world are faced with complex decisions on the best policies to improve liquidity. When economists weigh in with solutions, they fall into one of two groups ? those who want to borrow more and put more money […]
