We’ve just witnessed one of the most potent and unrelenting bear market rallies in history. And all it took was 4-days. Over this 4-day rally, the Dow Jones Industrial Average is up 15.5% which is the biggest run-up since August of 1932 during the Great Depression. The S & P 500 has even done better […]
While most people fixate on the $700 billion bailout there should be an intense focus on the other clandestine bailout that is occurring without Congressional approval. The Federal Reserve has already lent out nearly $2 trillion in emergency loans to troubled institutions with little if any transparency. Bloomberg News has recently requested the information be […]
The consumerist credit machine is coming to a grinding halt. It is hard to wean yourself off an addiction that has persisted for decades, unchallenged and enabled by companies and financial engineering. The idea of buying things with money you currently don’t have isn’t a new concept. In Edward Bellamy’s novel Looking Backward the concept […]
Leave it to California to first, stall a budget for a record 85 days only to pass a budget that amounts to kicking the economic shiny can down the pothole-filled road. We may want to save those cans for their redemption value since things are getting progressively worse. Only 6 weeks after being signed, the […]
The country has spoken and with a loud and convincing voice. Change is demanded. This historic moment in our history is appreciated on so many levels but once again, the market reminded us very quickly that things are not well on the global economic system. President-elect Obama is going to have many challenges waiting for […]
In the midst of this epic and monumental election campaign, which I do sincerely hope you go out and vote, the number one issue which is the economy is now fluttering into the abyss at a much quicker pace. On Monday, automotive sale numbers came out and the numbers were downright shocking. U.S. auto sales […]
As October came to a spectacular end, the housing market is still in severe distress. You would think that all the massive government intervention would at least do something in regards to stabilizing prices but unfortunately for Uncle Sam, prices are determined by local area incomes and fundamental factors. The massive economic intervention which has […]
The economy is once again in full delusional mode with consumer confidence earlier in the week hitting an all time record low and GDP contracting. But guess what? You wouldn’t know that by looking at the stock market. The S & P 500 for the week is up 8% and there has been no good […]
The U.S. Government wants you to stay perpetually broke. The lenders and banks want you to stay in the poor house. Why? Somewhere along the line the notion of saving money got perverted to the point that now people equate access to credit as actual money. This psychological shift didn’t happen overnight but there is […]
Figuring out housing prices isn’t rocket science. There is no need for a master’s degree in financial engineering to figure this out folks. Even as the housing market continues its downward slump, we are still at overpriced levels. Why? Well historically, housing as an investment only tracks with the nation’s inflation rate. That is until […]
