Economics

Courtesy The Daily Reckoning: The similarities between a certain card game and investing are undeniable – especially when you look at the players on both sides of the comparison. by Justice Litle “Paradoxically, perfect market efficiency leads to markets becoming inefficient.” – Lee Thomas III, Pimco global bond strategist “It’s immoral to let a...

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Courtesy The Daily Reckoning: Two separate news events late in August tell you all you need to know about the course of the low-intensity economic battle between the United States and China: China is winning. Dan Denning explains… by Dan Denning First, the Chinese have not given up their determined pursuit of scarce energy...

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The Daily Reckoning: There is no such thing as knowledge in investing – the best we can hope for is a preponderance of evidence, and as Carl Waynberg shows us, theories are constructed to be destroyed… by Carl Waynberg A few months ago at our monthly editorial confab, I had the gall, the stones...

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by Jim Amrhein The City That “Fair” Forgot ONCE AGAIN, September finds our nation sifting through the rubble, death, and carnage of a great catastrophe. A mighty hurricane has drowned New Orleans in what will surely prove to be the nation’s most devastating disaster, perhaps not in loss of life (that title belongs to...

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by Mike “Mish” Shedlock The short answer is the yield curve is starting to widen, Congress is going on another spending spree, the market thinks rate hikes are nearly done, and the Fed is likely to print more money for more government handouts. That combination is more important than a U.S. dollar that has...

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The Federal Reserve and the ‘global savings glut’ by Kurt Richebächer In his testimony to Congress on July 20, 2005, Mr. Greenspan declared it quite likely that the world is currently experiencing a global savings glut. Agreeing with Ben Bernanke, he mentioned this glut as one of the factors behind the so-called interest conundrum,...

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Should we care that China has revalued its currency, the yuan, by approximately 2.1%? by Justice Litle “Global inflation, interest rates, bond yields, house prices, wages, profits and commodity prices are now being increasingly driven by decisions in China. This could be the most profound economic change in the world for at least half...

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The impulse to ‘do something’ to help the victims of Hurricane Katrina is so great among the masses in the United States, no one dares to stand against it – no matter what the cost. Bill Bonner explains why sometimes inactivity is the best way to deal with this type of situation… By Bill...

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by Mike “Mish” Shedlock Here is a recap of the current state of affairs. In “Are You Missing the Real Estate Boom?” we noted Saxon Capital openly discussing both “credit events” and the “perfect storm” in an investor conference call. This is what Saxon Capital was saying: “At the point in time WHEN the...

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