August 2011 Monthly Archive

Bank of America executives may know more than we think!

Yesterday, while sitting comfortably in my living room, sipping a generous dram or two of 16-year Lagavulin (an Islay single malt scotch to the downtrodden who abstain from such pleasures), which I recently discovered and now think about constantly, I had the TV blaring subtly in the background; unfortunately it was tuned to CNBC. Read more

Gold. Dumb Money. Bubble?

I think the title is clear. I ask because we’re starting to get wind of bubble-talk from the financial press et al. It is very similar to the talk we heard on silver earlier in the year when its price increases began looking parabolic. Read more

A vicious cycle for crude oil.

"There are plenty of worries, there are plenty of fears, but so far the fears are completely unfounded," Rupkey said. "Bad things have not happened. We’ve been pleasantly surprised." Read more

Rabbits and Band Aides out of their…ah….hat, that’s right!

If anyone, other than me, has been trying to trade euro intermediate-term on the fundamentals, you have likely gotten your derrière handed to you. Read more

Attractive valuations: does that mean Keynes-ja vu all over again?

Hey – you can’t argue against the fact that stocks and commodities are more attractive buys right now than they were two weeks ago, based entirely on relative value. Read more

Once again: It is a deflation problem!

I have continued to watch with amazement that number of people who believe we have an inflation problem. I think it was either Mark Faber or Nassim Taleb, two people who do a lot of talking and throw a lot of stuff on the wall just in case something sticks, told us there was a “100 percent” guaranteeing inflation would spiral out of control, based on the money the Fed was “creating.” Read more

The Fed: their toolbox is bigger than yours.

I say this for two reasons: first, I think the markets were due for a breather; second, I think expectations were set in line with what was eventually delivered; third, I think the Fed carefully and effectively acknowledged – via low-rate pledge and rhetoric – the struggling US economy. Read more

Clueless Beyond Belief Awards

Time to belly up to the bar boys, as S&P’s pencil is sharpened for the next downgrade. Mr. Obama, maybe you need to stop hip-hopping in the Whitehouse and start getting real! Read more

How does it feel to be scolded by a Russia leader?

Maybe it’s my nationalistic tendencies, my likely narrow understanding of world history, or my bias towards free-market capitalism, but I am turned off by Russia. Read more

Charts of the Day: More QE3…please?

I read in a Bloomberg story today that Bill Gross was expecting QE3 in some form or fashion thanks to the US economy entering what he referred to as “stall speed.” Read more

Can Australia conquer adversity?

The Australian dollar has done very well lately and over the last couple years. Why? Well, because it’s been a go-to currency to capture yield … in a global environment of extremely low yields. Read more