The Fed is expected to raise rates yet again in December, as a hedge against inflation, but some believe a pause is in order. “With the federal-funds rate at 2%…
When Good News Is Bad News
The U.S. has clearly overcome the financial crisis, even as many other countries continue to struggle, but the impact on investments is sometimes perverse. As the Fed lowered interest rates,…
There Is No Normal
The Federal Reserve Board routinely gets it wrong. Given the political nature of its work, the differing opinions of its seven governors and, especially, the subjective economic beliefs that influence…
Addressing a Debt Crisis with More Debt
Last week, we discussed causes of the Great Recession. Today, we look at how it was addressed. The financial crisis was essentially a debt crisis. Mortgagees were unable to pay…
Not All Fed Governors Concerned About Inverting Yield Curve
In our last post, we noted that the yield curve is close to inverting, which is usually a sign that a recession is coming. We also said that actions of…
Inverting Yield Curve May Be Sign of Coming Recession — But Maybe Not
When holding an investment long-term earns a lower return than holding the investment short-term, it’s not a good sign. An inverted yield curve, which is what happens when 10-year Treasuries…
Tax Reform Busts Myth of “Secular Stagnation”
The two approaches most often used by government to help the economy grow are the Keynesian approach of stimulus spending and low interest rates, and the more free-market approach of…
Fed’s Bond Buying Not the Success Some Claim
“When money gets tight, greed turns to fear … “ …
We May Be Approaching the Longest Bull Market in History
As we’ve previously noted, records are meaningless. Still, we’d rather be living through the longest bull market in history than the longest bear market — and that seems to be…
Affordable Housing Is An Oxymoron
If you own your home, congratulations. Your children may not be so fortunate. With the unemployment rate below 4%, wages have been increasing, but at a slower rate than expected…