Thousands of years ago, Roman soothsayers would visit the oracles and interpret the entrails of slaughtered animals. We haven’t advanced much since then. Fortunately, no animals are slaughtered today, but…
The Inflation Straw Man
“When real interest rates start to move up, that’s when the crisis could hit.” …
Another Year of ZIRP?
When the economy recovers, interest rates will go up, right? That’s been the Federal Reserve Board’s line for years now. Yet as the Fed gushes about an allegedly booming economy,…
The Year of “May”
We’re well into January, but 2014 demanded a bit of reflection before commenting. Was it a good year or a bad year? We still don’t know. We’re calling it the…
It “Eats Societies Alive”
“Oh, no!” you’ve probably been thinking. “The cost of filling my gas tank dropped again!” Falling prices are a good thing for the cash-strapped American consumer, whose income on-average has…
Do You Believe in Santa Claus? You May Be A Keynesian.
The Christmas season is an appropriate time to reflect on Keynesian economics, given this: believing in Keynesian economics is a lot like believing in Santa Claus. Most Americans grow up…
Patience Pays Off for Fed, Investors
The new word is “patient.” And it’s a humdinger. The Dow Jones Industrial Average soared more than 700 points over two days last week after Federal Reserve Board Chair Janet…
The Markets Need Psychotherapy
“The whole idea that the stock market reflects fundamentals is, I think, wrong. It really reflects psychology. The aggregate stock market reflects psychology more than fundamentals.” Robert Shiller, Nobel Prize-winning…
Why It’s Called “the Almighty Dollar”
It may be a good time to plan that European vacation. The long-weak dollar is gaining strength again, which means you may be able to afford good food, good wine…