From the article by Andrew Sheng and Xiao Geng: “Indeed, today’s mainstream micro- and macroeconomic models are insufficient for exploring the dynamic and complex interactions among humans, institutions, and nature in our real economy. They fail to answer what Paul Samuelson identified as the key questions for economics – what, how, and for whom are …
Central bankers have the power to provide limitless cheap credit to governments. But that doesn’t fix the economy. Central Bank Power And Its Limit By Larry M. Elkin The euro will not dissolve, and the U.S. Treasury can borrow as much money as it wants while paying practically no interest, all because a couple of …
QE Infinity: Unintended Consequences (via Market Shadows) QE Infinity: Unintended Consequences There is an intense debate going on in the first-class cabin of Economics Airlines about the direction in which our plane should be pointed. And while those of us back in the cheap seats don’t get to help decide, knowing where we will land …
On malinvestment from Seeking Alpha: “Malinvestment is one of the most useful concepts in Austrian economics. As Wikipedia puts it, malinvestment refers to “investments of firms being badly allocated due to what they assert to be an artificially low cost of credit and an unsustainable increase in money supply, often blamed on a central bank.” …
Is China The Biggest Malinvestment Case Of All Time? Read More »
Are You Seeing What I’m Seeing? (via Market Shadows) Courtesy of Jim Quinn of The Burning Platform Is it just me, or are the signs of consumer collapse as clear as a Lowes parking lot on a Saturday afternoon? Sometimes I wonder if I’m just seeing the world through my pessimistic lens, skewing my point of …
Guest Article: Are You Seeing What I’m Seeing in the Economy? Read More »
Incorporating the Rentier Sectors into a Financial Model (via Market Shadows) Incorporating the Rentier Sectors into a Financial Model Courtesy of Michael Hudson By Dirk Bezemer and Michael Hudson As published in the World Economic Association’s World Economic Review Vol #1. ABSTRACT Current macroeconomics ignores the roles that rent, debt and the financial sector play in…
Mitt Romney and Taxes By Holly A. Bell I don’t disagree with Mitt Romney’s comment that the 47% of Americans who don’t pay personal income taxes won’t vote for him, but for a different reason. He describes these individuals as “victims” who are dependent on entitlements. While the U.S. probably has people within this group …
Why The 47% Won’t Vote for Romney and Why It Reflects Poorly on America Read More »
Feeding the Beast (8/26) (via Market Shadows) Here’s this week’s MarketShadows August 26 2012: Feeding the Beast Excerpt: The rally on Friday was triggered by a letter released by Ben Bernanke to US Rep. Darrell Issa, which was also leaked to the WSJ: “Federal Reserve Chairman Ben Bernanke, in a letter responding to questions posed by …
Is the Fed the Only Thing Driving U.S. Financial Markets? Read More »
Market Shadows Newsletter: It’s my party, and I’ll leave if I want to (via Market Shadows) Read the latest MarketShadows August 12 2012 Excerpt: Trading volume this week dried up. Retail investors are realizing that the markets are manipulated and retail traders are learning that it’s difficult to compete against the High Frequency Trading Machines. Zero …
Why Trading Volume in the Stock Market Has Dried Up Read More »
Financial Markets, Politics, and the New Reality (via Market Shadows) Financial Markets, Politics, and the New Reality Courtesy of John Mauldin at Thoughts from the Frontline If you’ve been following my newsletter, you’re familiar by now with my friend George Friedman and the geopolitical analysis company he founded, Stratfor. And if you’ve read any of …
Financial Markets, Politics, and the New Reality Read More »
