with the budget deficit now declining the burden is falling increasingly into the hands of corporations as consumers remain fairly weak and the foreign sector contributes a net negative. So what’s the outlook here? Will corporations actually continue to spend?
The Bank of England Debunks the Money Multiplier
A new research report out of the Bank of England debunks the money multplier in one of the best overall presentations of the concept that I’ve seen.
Is a Rate Hike On Deck?
It’s fashionable these days to talk about the Fed raising interest rates. But what’s the likelihood of this happening and would it be a prudent move at this point in the business cycle?
IPOs: When Stability Creates Instability
One of the more useful behavioral aspects espoused by Hyman Minsky was the concept that stability tends to create instability. In other words, in financial markets, we often see the most unstable markets building at times when they appear to be the most stable.
SocGen: 2 Reasons to be Bullish About Peripheral Europe
Here’s a contrarian view for you:
Why Mutual Funds Can’t Copy Warren Buffett
be mindful of people selling their “invest like Buffett” strategy. The odds are, they’re not doing anything remotely close to what Buffett does.
What a Repeat of 2009 Would Look Like
Nothing too exciting here, but I thought this chart from MarketWatch was pretty a pretty interesting perspective of some historical bull/bear markets. It shows how some historical precedents might play out:
“Keynesian” Myths and Misunderstandings
As an entrepreneur and capitalist, I read this critique of “Keynesianism” by John Mauldin with great interest. Unfortunately, I fear it is extremely misleading….
Macro is Becoming the Dominant Financial/Economic Perspective
As macro becomes more important to the world of practitioners the economists are being forced to adapt and apply models and understandings that become more useful to practitioners and policymakers. This might be a new trend that’s developing, but it’s not a blip on the radar. Macro is the wave of the future.