Tag Archives: Alan Greenspan

US FED’S Battle Intensifies

This piece is intended as a follow-on to our recently published (October 2010) commentary about: (1) the US bond market’s current position, within the context of the last 50 years of its history, and (2) the zero interest rate floor it faces in carrying out massive Federal Reserve money printing activities to monetize the current fiscal year’s (third straight) trillion-dollar deficit. We speculated that Fed Chairman Bernanke’s“unsustainable” characterization of US budgets, on a number of occasions over the past two years was not just so much tut-tutting; that word was and is highly descriptive of the situation. Few Democrats and … Continue reading

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An Old Fashioned Depression? Maybe, But Not Likely

How could this be happening? In the modern era, the most extreme terminology permitted in polite society for describing an economic downturn is “recession”. Although there was a 10-year period, well-known as the Great Depression, the word Depression has been banished by financial industry word-police for many years. Apparently, the 1930s were, until now, considered an anomaly which could not re-occur, because now we have modern hedging technology, incomparable market liquidity and much improved government supervision, among many other reasons. So, what went wrong this time? How could the damage be so colossal? After all, until very recently, business was … Continue reading

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