RSS Feed
Twitter
Facebook
Email
HomeCan Hyperinflation Happen Overnight?
Posted by Larry Doyle on June 11th, 2010 12:50 PM |
Are the financial wizards in Washington and around the world concocting potions and building financial models which may create a greater crisis than that we are currently experiencing? What type of crisis might that be? Our friends in Germany know all to well about the perils of hyperinflation. Could we be facing the same prospects? While our central bankers are touting the current benefits of limited inflation, to be fair the bankers and the economy are battling the undercurrents of disinflation and deflation.
Could those currents change on a dime and create a ‘funnel’ in which our economy is engulfed by hyperinflation? Let’s navigate this topic and review a commentary put forth by Daryl Montgomery, a guest on No Quarter Radio’s Sense on Cents with Larry Doyle from March 7th. Daryl is a fellow contributing author at Seeking Alpha and writes on this topic today, (more…)
Lambs Led to the Slaughter
Posted by Larry Doyle on June 11th, 2010 7:34 AM |
“Here, meet my client. He’s got money. In fact, he’s got a lot of money . . . I like him, I really like him!!”
So it goes on Wall Street, where brokers all too often are focused on landing the ‘big fish.’ The brokers may believe the ‘big fish’ will produce many meals (that is, real payout). Meanwhile, all too often, those structuring highly complex transactions on Wall Street view these ‘big fish’ more akin to ‘sheep’ which can be fed overpriced deals including toxic waste. So it goes on Wall Street, just as it always went.
Who are supposed to look out for the sheep? The shepherds, both brokers and industry regulators. Are these shepherds capable of protecting the sheep? Are the shepherds’ interests aligned with the sheep, or the butchers (I mean, those structuring the complex transactions)? (more…)
“Whose Ass to Kick?”
Posted by Larry Doyle on June 10th, 2010 2:13 PM |
I admire personal and professional toughness. I particularly admire toughness when it is imbued with class, dignity, and integrity. These virtues are most effectively conveyed by consistent actions, not by mere words. Although I will allow that everybody, myself included, says things that they may like to have back, the fact is I think President Obama disgraced not only himself but the office the other day in his interview on the Today show.
America does not need to hear the President openly and publicly display a crass, crude, and undignified demeanor. Language like that is better left on playgrounds and street corners and is anything but Presidential. It does not promote integrity.
America deserves better. To that end, President Obama subjects himself to the following:
Cartoon by Michael Ramirez
Consumer Demand Continues to Contract
Posted by Larry Doyle on June 10th, 2010 8:32 AM |
For those inclined to monitor the pulse of the American consumer, please make it a habit to regularly visit the Consumer Metrics Institute. Rick Davis and team do fabulous, cutting edge, and real-time analysis of consumer activity in our domestic economy. Recall that Rick is already way ahead of the curve in calling for -1.5% 2nd quarter GDP and has an early call for a -2% 3rd quarter GDP.
What has Rick seen over the last ten days? Continued contraction in consumer spending. Let’s navigate. (more…)
Goldman Sachs Stonewalling Highlights Trading Mentality
Posted by Larry Doyle on June 8th, 2010 3:30 PM |
Did Goldman Sachs ‘flip the bird’ at the Financial Crisis Inquiry Commission and, in turn, America by its handling of the commission’s request for information? The fact that the FCIC felt it necessary to issue a subpoena to Goldman is an indication as to how serious the commission is handling this issue. Why would Goldman be so brazen and bold in its dealing with the commission?
Nathaniel Popper of the Los Angeles Times wrote a comprehensive article on this Goldman bombshell this morning, Goldman Sachs Stonewalling, Federal Panel Says:
Goldman Sachs Group Inc., already under fire for its actions leading up to the financial crisis, came under attack from a federal commission that accused it of refusing to divulge information, including documents detailing its controversial bets on the mortgage market. (more…)
What Would John Maynard Keynes Do Now?
Posted by Larry Doyle on June 8th, 2010 7:41 AM |
John Maynard Keynes
What now?
As G20 nations around the world retreat from policies of continued coordinated fiscal stimulus, the question begs, what does the future hold for a world awash in crushing levels of overwhelming debt? Is the United States the only nation willing to stick to the script of classic Keynesian economics?
If only we could go back in time and ask John Maynard Keynes, the economic giant amongst economic giants, what he would propose now? Would Keynes stick to his classic Keynesian economics script at this juncture? Could Keynes ever have envisioned a world awash in so much debt? (more…)
Financial Crisis Inquiry Commission Subpoenas Goldman Sachs
Posted by Larry Doyle on June 7th, 2010 3:32 PM |
Talk is cheap!!
Lloyd Blankfein can talk all he wants about how he will implement needed changes at Goldman but Lloyd, “actions talk, bulls&*@ walks.” Why am I calling Lloyd and the Goldman crowd out once again? The Wall Street Journal highlights, Crisis Panel Subpoenas Goldman Sachs,
The bipartisan commission investigating the U.S. financial crisis said Monday it issued a subpoena to Goldman Sachs Group Inc. for failing to provide information in a timely manner. (more…)
