ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
If David Stockman, former director of the Office of Management and Budget under President Ronald Reagan, created the political party of “Fiscal Conservatives,” I might have to give serious consideration to signing up. For now, I have to settle for non-partisan organizations like the Peter G. Peterson Foundation who work hard to promote fiscal discipline … Read more
I decided to take the plunge and read “How the Great Recession Was Brought to an End” by economists Alan Binder (Gordon S. Rentschler Memorial Professor of Economics, Princeton University) and Mark Zandi (Chief Economist, Moody’s Analytics). Binder and Zandi conclude that the various stimulus programs and creative use of montary policy over the last … Read more
As fears mount that the United States is dipping into a double-dip recession and headed down the road of deflationary Japan, Federal Reserve Ben Bernanke tip-toed, tap-danced, and downright side-stepped these landmines during his testimony to the Senate today. The market still did not like what it heard, sold off nearly the instant the Semiannual … Read more
I am always intrigued by the words of optimism and the steadfast bullish arguments in the midst of market sell-offs. I am not talking about technical assessments calling for a short-term bounce. I am talking about the “everything is just fine” variety. Monday’s Nightly Business Report provided a picture-perfect example of such talk from Bernarnd … Read more
(This is a guest post written by “Chenzo” of forexcharts.net) If any lesson was clear during the past few turbulent weeks of trading, it was that our markets are more closely entwined than ever. Perhaps this is a sign of our continuing globalization path, but the waves created by any financial event are traveling across … Read more
“Collateral Damaged: The Marketing of Consumer Debt to America” by Charles R. Geisst is a detailed and captivating examination of the history and growth of consumer debt in America. The book scrutinizes the political, cultural, social, and financial forces that converged to inflate America’s tremendous bubble in consumer credit. Geisst reaches all the way back … Read more
The news has rippled across the globe that the U.S. Securities Exchange Commission (SEC) finally got around to charging Goldman Sachs with fraud: “The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of subprime residential mortgage-backed securities (RMBS). Goldman Sachs failed to disclose to … Read more
During his State of the Union address, President Obama sent a cheer amongst Congressional Republicans when he announced (confirmed) his support for nuclear power as a source of clean energy. Obama followed through with his promise when he announced last week $8 billion in loan guarantees for building two nuclear plants by Southern Company in … Read more
“The rich rule over the poor, and the borrower is servant to the lender.” (Proverbs 22:7, New International Version) This proverb is understood all too well by anyone who has become impoverished by severe indebtedness. I thought of this proverb as I read a Reuters article titled “Eurozone gives Greece 30 days to show good … Read more
Treasury Secretary Tim Geithner did not sound like much of a Treasury Secretary as he tried yet again to speak about the financial pains of the American people and express empathy. In a CNBC interview with John Harwood, Geithner claims he “doesn’t understand” how bankers can earn such large bonuses given these dark economic times … Read more