Pragmatic Capitalism

Practical Views on Money & Finance

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Fun With Charts – Paul Krugman Edition

Someone sent me an email this evening with some details on the Paul Krugman response to James Montier which I discussed here. I had previously stated that the Krugman response was lacking meat. But it’s actually worse than that. It’s actually highly misleading and appears intentionally so. In the post Dr. Krugman tries to show… Read More

James Montier Rightly Dismisses the Natural Rate of Interest

Warning – This post is extremely nerdy and could result in extreme sleepiness.  Do not try to read this post while operating heavy machinery. The consumption of alcohol before, after or during a reading of this is not ill-advised.  James Montier has an excellent new quarterly letter dismissing the idea of the Natural Rate of Interest. None of it… Read More

What if There’s no Such Thing as a “Normal” Economy?

Tyler Cowen has a piece in the NY Times from this past weekend discussing the potential that the US economy will never return to “normal”. The article implies that the US economy could be in the middle of a “great reset” during which the future looks quite “grim”. But there’s a potentially substantial problem in… Read More

Thoughts on Tobin’s (Useless) Q

Bloomberg has an eye catching piece on their site about the market’s high valuation according to a ratio called Tobin’s Q. The article is an eye grabber for two primary reasons: The article scares you into thinking something disastrous could be on the verge of occurring by playing up the similarities to the Nasdaq bubble… Read More

Thoughts on The Bond Debacle

Earlier this year I discussed the fairly dramatic change in my view on long-term government bonds. In essence, I said that bonds were irrationally priced given the low likelihood of deflation that the market was pricing in. Since then long bonds are one of the worst performing asset classes in the world on both a… Read More