Tuesday , November 30 2021
Home / Tag Archives: On Economy

Tag Archives: On Economy

What’s In Your Loan?

Opposing Monetary Directions “Real estate is the future of the monetary system,” declares a real estate bug. Does this make any sense? We would ask him this. “OK how will houses be borrowed and lent?” “Look at this housing bond,” he says, pointing to a bond denominated in dollars, with principal and interest paid in dollars. “What do you mean ‘housing’ bond’,” we ask, “it’s a bond denominated in dollars!” “Yes, but housing is the collateral.” OK, so...

Read More »

Obituary for the Acting Man

I write this with sadness, still, at the news of the death of my friend Heinz Blasnik. He is better known by his nom de plume, Pater Tenebrarum, who published the economics blog Acting Man and wrote for many other financial sites. I met Heinz twice, at his home in Vienna. He was a kind and gracious host, sending his driver to pick me up and serving Austrian delicacies for lunch. When I met him, he was struggling near the end of a long illness...

Read More »

India’s Experiments with COVID-19

  Shooting from the Hip [ed. note: the tweets linked below mainly show videos from various lockdown phases] Reminiscent of his demonetization effort in 2016, on 24th March 2020, Indian Prime Minister Narendra Modi, appeared on TV and declared an immediate nationwide curfew. No one was to be allowed to leave wherever he or she happened to be. All flights, trains (after 167 years of continual operation) and road transportation came to a...

Read More »

Diversity or The Bigotry of Low Expectations

    Value Traps and Economic Ignorance A financial analyst is often, or at least should be, more of a psychologist than a financial expert. There are companies that I knew fifteen years ago that had inherent value a multiple of what their stocks were trading at. Today, there continues to be similar upside, except that upside targets and share prices are lower. What went wrong? A problem reaches the far North faster than climate change...

Read More »

Dawn of the Dead in the United States of Voodoo

  Dead Men Don’t Spend The checks went forth yesterday. And all the peoples rejoiced. Stimulus blinders firmly attached! Let’s go! Mars is within reach! [PT] Bloomberg reports: As the economy reopens, consumer spending over the next two quarters is likely to be the strongest such period in at least 70 years with a rebound in services leading the way, according to economists at Wells Fargo & Co. This is La Bubble Epoch… a gay...

Read More »

Did You Make Janet Yellen Rich?

  The Stress of Losing Billions Up until the WallStreetBets crowd short squeezed Melvin Capital for a $7 billion loss, Robinhood had it made. But losing billions is stressful. And when your product blows up your customer the clucking that follows comes hot and heavy. A surprise revival of business at Game-Stop… [PT] One of the sweetest displays in the world, we’ve been told, is the bursts of digital confetti that shower down...

Read More »

Reddit Residue on Silver

  Silver Yo-Yo The price of silver is going up and down like a yo-yo. On Sunday and into the first part of Monday, the price skyrocketed on news that Reddit was touting the metal. But as the data clearly showed, the price was not driven up by retail buying of physical metal. Silver, March futures from Jan 27, 30 minute chart: a lot of volatility, but silver seems to have established a higher low after coming down from the initial...

Read More »

Crypto-Mania Resurrected

  The Investment Asset of the Century Makes yet another Comeback Even the most ardent cryptocurrency bulls are probably slightly slack-jawed at this juncture and can hardly believe it. To be sure, many people were undeterred by the vicious bear market that saw BTC melt down from just below $20,000 in Dec. 2017 to less than $3,300 in Dec. 2018, but we doubt that even these steadfast believers in the grand-daddy of cryptocurrencies...

Read More »

Grantham’s ‘Real McCoy’ Bubble in a World Gone Mad

  The Lure of Easy Money Right now happens to be an attractive time to do something stupid.  What’s more, everyone is doing it.  Maybe you are too. Stock valuations and corporate earnings growth no longer appear to matter.  Why not buy an S&P 500 index fund and let it ride?  Or, better yet, why not buy shares of Nvidia? NVDA, weekly, over the past 6 years. The stock really started to take off after the 2016 election surprisingly...

Read More »

Death of an Inter-Market Correlation

  A Curious Development in Japan For a long time Japanese stocks have been little more than a mirror image of the yen – they would rise when the yen lost ground and fall when it strengthened. This has changed rather noticeably of late as the chart below illustrates. Incidentally, the Nikkei has broken out over a resistance level that has held it back since early 2018. Whether this breakout will hold remains to be seen, but so far it...

Read More »