big banks

How Markets Will Handle End of Money Printing Era

By Wednesday, November 5, 2014

Markets Will Handle End of Money Printing EraIt’s finally over…

The quantitative easing programs initially started by the Federal Reserve six years ago are (for now) history.

In its statement on October 29, the Federal Reserve said, “Accordingly, the Committee decided to conclude its asset purchase program this month.” (Source: “FOMC Statement,” Federal Reserve, October 29, 2014.)

The reason for ending the quantitative easing: “The Committee judges that there has been a substantial improvement in the outlook … Read More

The Flight Back Down to Reality Ahead for the Rich

By Friday, September 26, 2014

Stock Market Bubble Starting to Show Signs of StressSix years ago this month, in the midst of the Great Recession, Lehman Brothers, one of the most well-known investment banks in the U.S. economy, filed for bankruptcy.

At the time, Lehman’s bankruptcy sparked widespread worries…and the U.S. financial system teetered on the verge of collapse. For those of us who remember that time, there was too much uncertainty.

So, the Federal Reserve and the government stepped in to help … Read More

About That $38-Million Ferrari…

By Wednesday, September 10, 2014

The Other Side of the Ferrari StoryA 1962 Ferrari 250 GTO Berlinetta has set a new record selling for $38.1 million at an auction in Pebble Beach, California. News of the sale was all over the Internet and made it into major newspapers like The New York Times, The Wall Street Journal, and the Los Angeles Times.

But it’s not just old, rare cars that are selling. The high-end luxury car market is … Read More

Having Trouble Coming Up With Four Hundred Bucks

By Friday, August 15, 2014

Economic Growth in 2014The burning question that’s facing economists like me today and that will only be answered in the future: did creating $3.0 trillion in new money out of thin air really make things better or worse for America?

My personal view, as expressed in these pages, is that the rich (the big banks and Wall Street) got richer from the “printing press” era, while the average American did not directly benefit … Read More

Dead-Cat Bounce Over for the Housing Market?

By Wednesday, April 23, 2014

Momentum Housing Market Shows Clear Signs EasingI have been saying this for a while: You can’t have a housing recovery unless actual home buyers are involved.

We are very far away from seeing the housing market reach its 2005 highs…and as time passes, it becomes clearer that this generation may never see them again.

How can I say that?

What we have seen in the housing market since then, but mostly since 2012, in my opinion, … Read More

The Best Investment You Can Make in 2014?

By Friday, February 7, 2014

What Happened Last Time Gold Had a Bad YearTo say the very least, 2013 was an interesting year for gold bullion. The precious metal’s price surprised gold bugs and declined 24%.

As 2013 progressed, we heard calls for the yellow metal to fall even lower in price. The stocks of gold producers were slammed. Equity research departments at big banks like The Goldman Sachs Group, Inc. (NYSE/GS) called gold bullion a slam-dunk sell (and the last time I … Read More

The Company I Like Among the “Out-of-Favor” Stocks

By Wednesday, January 22, 2014

Top Stocks for Investing Against the HeardWhen it comes to love, we often hear the phrase, “Beauty is in the eye of the beholder.” Well, the same could be said for the stock market.

Many investors look for the companies that deliver consistent results and satisfy the number-crunchers on Wall Street. While I belong to that group, I also take alternative views and search for companies that are the so-called dogs of the stock market. However, … Read More

If You Are in the Housing Market, You Need to Read This

By Thursday, January 16, 2014

Leading Indicator Flashes Red Warning Sign for HousingTo see where the U.S. housing market is headed, we really need to look at what real home buyers—those who are planning to stay in their home for the long term—are doing. Institutional investors, who came into the housing market in 2012 and bought massive amounts of homes, are speculators; they’ll quickly rush out of the housing market if they can get a profit or if they can get a … Read More

The Mother of All Bubbles?

By Thursday, December 5, 2013

real estate marketAs I often harp on about in these pages; economic growth occurs when the general standard of living in a country gets better. You can’t say an economy is improving when a significant portion of the population is suffering. You can’t claim there’s economic growth when the poverty rate is increasing. You can’t say the economy is improving when personal incomes and savings are declining.

Looking at this a little … Read More

The Race That Will Not End Well

By Friday, November 22, 2013

central bank Central banks around the global economy are involved in a race that will not end well. Of course, I’m talking about the race to the bottom of currency devaluation, which is being achieved through the printing of more and more paper money backed by nothing.

Almost weekly, I hear news about different central banks in the global economy cranking up the speed of their printing presses; they are fixated on … Read More