The Austrian School of Investment Thought
economy
Economic Shutdown and the Cost to Save a Single Life
America is facing a dilemma. Amid the greatest crisis since World War II, and four weeks into an effective shut down of the U.S. economy as a response to the COVID-19 Pandemic, public debate is turning towards the question of how long the shutdown should continue. Last week President Trump released federal guidelines for “re-opening” … Continue reading
Keep an Eye on China
A good (despite the hyperbolic headline) post on Zero Hedge this morning about the Trump administration cracking down on trade issues with China: Trump to Launch Trade War With China on Friday, Beijing vows retaliation. As we mentioned shortly after the election in Chines Currency Manipulation and the New “Giant Sucking Sound”, trade relations with … Continue reading
Zero Hedge: What if Rates Rise Above 3.5% ?
Late last month the notorious financial blog Zero Hedge published an analysis regarding the economic after shocks that could occur if interest rates were to spike above 3.5%. Indeed eight years into “recovery” from the great recession of 2008, it is easy to forget just how extraordinary Federal Reserve policy remains. Just because the can … Continue reading
James Bianco on Bloomberg
Jame Bianco is President of Chicago Based Bianco Research. While not strictly an “Austrian” economist/strategist, he has long been writing and commenting on topics concerning Austrians such as credit expansion, central banking policy, politics and economics. He is certainly in the category of under the radar gurus (as in legitimate guru, not the carnival barker … Continue reading
Shave and a Haircut For Munis?
By Ted Barnhart Anyone who considers themselves an accomplished skeptic, should be familiar with an often used quote attributed to German philosopher Arthur Schopenhauer: “All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” No doubt Meredith Whitney is quite familiar with the … Continue reading
Friday Humor: Two Stockbrokers Are In a Bank…
Two stockbrokers are in a bank, when, suddenly, armed robbers burst in, waving guns and yelling for everyone to freeze. While several of the robbers take the money from the tellers, others line the customers, including the two stock brokers, up against a wall, and proceed to take their wallets, watches, and other valuables. While … Continue reading
Are Democratic Presidents Really Better for the Economy than Republicans?
According to Richard J. Carroll in a Bloomberg.com Op-Ed piece promoting his new book, the answer is yes: In “The President as Economist: Scoring Economic Performance From Harry Truman to Barack Obama,” I compare the 12 presidents since World War II using 17 economic indicators, including growth in gross domestic product, rate of unemployment, inflation, … Continue reading
Are U.S. Banks Ready for a Break Up of the Euro?
Simon Johnson, is the former Chief Economist of the International Monetary Fund (IMF) and is now at MIT. Last month he wrote “The End of the Euro: A Survivor’s Guide.” Today on Bloomberg.com he writes that U.S. Banks Aren’t Nearly Ready for the Coming Euro Crisis. Some of his thoughts on the matter: Very few … Continue reading
Thoughts on the Fed (FOMC) Meeting
The FOMC wrapped up its two-day meeting by announcing that it will extend the Operation Twist program for the rest of the year. The statement also said that “the committee [FOMC] is prepared to take further action as appropriate to promote a stronger economic recovery and sustained improvement in labor market conditions in a context … Continue reading
The Rain in Spain…
No sooner has the financial world breathed a collective sigh of relief over the results of the Greek Elections, than the dam appeared to spring another leak. This time in the form of surging Spanish bond yields. As reported by the WSJ.Com yields on the Spanish Ten Year Treasury “surged to the highest on record … Continue reading
Friday Humor: (The Onion) Drunken Ben Bernanke Tells Everyone at Neighborhood Bar How Screwed Up Economy Really Is
From the Onion: SEWARD, NE—Claiming he wasn’t afraid to let everyone in attendance know about “the real mess we’re in,” Federal Reserve chairman Ben Bernanke reportedly got drunk Tuesday and told everyone at Elwood’s Corner Tavern about how absolutely…..Excerpt from The Onion Very funny, but also very sad that there is more truth in this article … Continue reading
Coming to a Theater Near You?
Back in April the Sun Sentinel news in Ft. Lauderdale, ran an investigative series titled Bad-Neighbor Banks, which focused on the side effects of the South Florida foreclosure crisis. The article describes how some of “the world’s biggest banks” have left vacant homes to literally rot away. In Florida the problem is magnified by the … Continue reading
