Stock futures little changed after records, acquisitions eyed http://t.co/Aqw21iH3pY
11 minutes ago
Archive for September, 2011
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Commodities Bubble Interview
Some of you might enjoy my interview over at Benzinga Radio: Here is the audio and a transcript: Stresses Seen at the Outer Surface of the Ballooning Commodities Complex If the link does not work, go here: http://www.benzinga.com/content/1954634/stresses-seen-at-the-outer-surface-of-the-ballooning-commodities-complex
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Euro Toast, Anyone? The Meltdown Picks Up Speed
Greece’s Finance Minister reportedly said that his nation cannot continue to service its debt and hinted that a fifty percent write-down is likely. Greece’s sovereign debt is 350 billion euros—so losses to holders would be 175 billion euros. That would just be the beginning, however. Nouriel Roubini has argued that the crisis will spread from [...]
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Is the Commodities Bubble a Case of Index Speculation by Money Managers?
In two previous blogs I have argued that we are nearing the end of the greatest speculative bubble of all time. And right on cue, commodities markets have started to collapse. To be sure, they will not collapse all at once. Smart money is pulling out, and dumb money will come back in to buy [...]
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The Biggest Commodity Bubble of All Time: Response to Critics
Ok, my short piece on the commodities bubble unleashed a flurry of comments—especially over at Naked Capitalism and Pragmatic Capitalist—but also a few here on the GLF. There were a lot of nice comments but also quite a few negative ones. In particular, several claimed I don’t know what I’m talking about. First, in a [...]
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The Biggest Bubble of All Time: Commodities Market Speculation
Sorry, this is a day late (but hopefully not a dollar short). Back in fall of 2008 I wrote a piece examining what was then the biggest bubble in human history: http://www.levyinstitute.org/pubs/ppb_96.pdf. Say what? You thought that was tulip bulb mania? Or, maybe the NASDAQ hi-tech hysteria? No, folks, those were child’s play. From 2004 [...]
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Fear of Flying
Sorry my post for today will be a bit late; just got back from a 1000 mile trip that took 14 hours to fly. I can drive it in 20 hours. A hundred years of aviation evolution has managed to shave six hours off the trip. The connecting plane, operated by one of Delta’s regional [...]
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Framing Modern Money
Here’s an excellent example of good framing. Susan Feiner explains why sovereign governments using “modern money” (their own currency) cannot go bankrupt. U.S. Bankruptcy–A Colossal Hoax. by Susan Feiner, Professor of Economics, University of Southern Maine Readers put on your thinking caps and learn something new about money. Modern money—not the old fashioned, greasy [...]
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Framing: Morality Trumps Reason When it Comes to Vampire Squids and Other Blood Suckers
Here is an excerpt from the most important article you will read this year, by George Lakoff: Here’s how public intimidation by framing works. The mechanism of intimidation is framing, not just the use of words or slogans, but rather the changing of what voters take as right as a matter of principle. Framing is [...]
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An Alternative to President Obama’s Jobs Plan
By L. Randall Wray and Stephanie Kelton On Thursday night Barack Obama will deliver his highly anticipated jobs speech. At this point, only those closest to the president know exactly how he intends to help spur the economy and create jobs, but reports suggest that he is mulling a $300 billion jobs package that includes [...]
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Helicopter Ben: How Modern Money Theory Responds to Hyperinflation Hyperventilators, Part 3
In the first part of this series on hyperinflation I addressed the critic’s view that if Modern Monetary Theory were adopted, this would inevitably lead to hyperinflation. I argued that this is obviously false—MMT describes how any sovereign government that issues its own currency spends. They’ve all done it for the past “4000 years at [...]
