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Pragmatic Capitalism

Pragmatic Capitalism

Economic Myth Busting – The Video Version I joined Erin Ade on Boom Bust on RT TV this afternoon to discuss economic myths and hyperinflation. We covered a lot of ground in 10 minutes including the money multiplier, paying back government debt, the government’s debt constraint, hyperinflation and the “money printing” myth. 5 Things To Ponder: Beer Goggles, Fires And Luck While the article was based around the historical statistical data, it got me to thinking about the average investor and where they are currently positioned in the markets today. More importantly, what are some of the risks that could derail the previous analysis.
Bespoke Investment Group - Think BIG

Bespoke Investment Group - Think BIG

This chart crossed our Twitter feed more than a couple of times over the last few days and didn't make much sense to us, so we decided to look into it. The argument implied is that when Wall Street blows up on the big screen, a market crash can't be far away. Looking at the above chart, it seems like every new movie featuring the financial world has been the harbinger of doom, and a massive bear market has been just around the corner. Think of it as a Hollywood version of The Skyscraper Index. A closer look at the timing of the movies indicates that this just isn't the case. Below is a chart of the S&P 500 dating back to 1985.

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis In a speech at the National Press Club in Washington, IMF managing director Christine Lagarde stated “If inflation is the genie, then deflation is the ogre that must be fought decisively.” With that sentence Lagarde did something most central banks won't: discuss Lord Voldemort, the deflation ogre, by name. Please consider Christine Lagarde warns of growing threat of deflation. “With inflation running below many central banks’ targets, we see rising risks of deflation, which could prove disastrous for the recovery,” said Ms Lagarde, in a speech at the National Press Club in Washington.
by Bill McBride on 1/17/2014 04:20:00 PM From housing economist Tom Lawler: Based on realtor association/MLS reports from across the country, I estimate that US existing home sales as measured by the National Association of Realtors ran at a seasonally adjusted annual rate of 4.96 million in December, up 1.2% from both November’s seasonally adjusted pace and last December’s seasonally adjusted pace. I estimate that unadjusted sales (as measured by the NAR) showed a slightly higher YOY growth than SA sales, reflecting this December’s higher business day count than last December.

Calculated Risk

Calculated Risk