Yellen’s Delusional Statement Guarantees a Crash Is Around the Corner
Janet Yellen Said What!? She just had to do it! Human behavior and its accompanying delusion is just so predictable! Earlier this week, she straight up said that “she does not believe there will be...
View ArticleWhat Should the Fed Be Worried About?
You’re probably a little fed up with the Fed, but it’s worth paying attention to our nation’s central bank, even if it holds less influence than it would like to think. Let’s talk brass tacks for a...
View ArticleCentral Bank of the World
If, by chance, you’re not familiar with my work, I focus on the Federal Reserve System. That’s the formal name for the central bank of the United States, most often referred to simply as “the Fed.”...
View ArticleAbolish the Fed?
We’ve been led to believe that central banks – and especially the Federal Reserve System – was put in place to protect us. That’s a laugh! Central banks are partnerships created between bankers and...
View ArticleIs the Federal Reserve Doing Its Job?
Today let’s talk about the Federal Reserve’s “dual mandate” from Congress. It’s a phrase that gets thrown around a lot, so it’s worth unpacking. The Federal Reserve Act of 1913 established the central...
View ArticleWhat If It Just Doesn’t Matter What Trump Does With the Fed?
On paper, it seems like great changes are imminent at the Federal Reserve, ostensibly the center of the world’s most important economy. Not only is Fed Chair Janet Yellen’s term almost up, but there...
View ArticleCan We Live Without a Central Bank?
It’s no secret that I’m not a big fan of the Federal Reserve. In fact, I said as much just a couple weeks ago in Nashville, Tennessee, at the Irrational Economics Summit. Our central bank has been...
View ArticleThis Thanksgiving Goes to Corporations: Thanks for the Greatest Free Gift in...
It’s no f’ing wonder!” I yelled to no one in particular the other day when my researcher, Dave Okenquist, shared with me a chart he’d just come across! “We’ve died and gone to heaven thanks to these...
View ArticleAll the Banks Deserve Are Crocodile Tears
It’s official. Lending institutions are having a tough time making loans. Don’t get me wrong, they still make money the old fashioned way: by borrowing from us through deposits on which they pay almost...
View ArticleFull Steam Ahead
It’s common knowledge that the Federal Reserve has its tentacles wrapped around the global financial system. Aside from trying to run the U.S. economy on its own, the Fed promotes a stable financial...
View ArticleThe Fed’s Win Rate is Still Near Zero
I’m excited for the new year for many reasons but I’m also thankful for a great 2017. Since this issue of Economy and Markets will be my final one of the year, I thought it fitting to review this year...
View ArticleCan We Make Sound Financial Decisions Anymore?
I. Hate. Central. Banks. Loathe them. They’ve hijacked our economy and the markets and taken away all our power to make sound financial, investment, and business decisions. Sure, you’ve got to hand it...
View ArticleOr Is It Time to Panic?
What exactly are investors worried about? Stocks and Treasury bonds were routed last Friday, with the Dow Jones suffering the biggest one-day drop since the Brexit vote in June of 2016. The long-term...
View ArticleHow Do We Stop the Insanity?
Nine years of QE… Near zero interest rates… When the effects of those started to fizzle out, we got tax cuts… Now, the new spending bill will add $300 BILLION to the deficit. This. Is. Insanity! We’re...
View ArticleBad Timing
The U.S. government’s borrowing needs are on the rise, and so are interest rates. Now is not the time to increase borrowing. Why? Because it’s going to cost us taxpayers more. But do our elected...
View ArticleIs the Economy Overheating?
Let’s face it: Interest rates have been artificially depressed for the last decade. Central banks, including our own Federal Reserve, have manipulated rates and stimulated economies to the point that...
View ArticleCalm Before Chaos
It’s been quite a tug-of-war of late. After the late-February spike in yields, Treasury bonds seemed to catch some air as stock investors shed some risk. Last month, the yield on the long-term Treasury...
View ArticleIs That… Inflation on the Horizon?
Treasury bonds were fairly quiet last week and have been tame so far this week too. Stocks sold off recently when Gary Cohn, President Trump’s top economic advisor, resigned, reportedly because Cohn...
View ArticleAhead of the Yield Curve
Since last Thursday, the yield on the long-term Treasury bond is down by about 10 basis points. Since its recent peak a little over three weeks ago, the yield is off by 16 basis points. On Friday,...
View ArticleYields drop after Fed hikes rates
Last week was interesting, to say the least. It was highlighted by a Federal Open Market Committee (FOMC) meeting, more White House shake-ups, a budget deal, and more tariffs. Along with all that, the...
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