Salient to Investors: Marc Faber of the Gloom, Boom and Doom Report said: Printing money creates bubbles because it doesn’t flow evenly into the economic system but stays in the financial services industry and among people who have access to these funds like the wealthy. The printing press helped inflate
READ MORE... →Salient to Investors: Real estate equity jumped 25 percent in 2012, the biggest increase in 65 years. Home values rose to the highest levels since 2007. Shaun Richardson at Icon Advisory said mortgages originations should rise 10 percent in 2013. The Fed said 6 percent of lenders eased equity-mortgage standards at the end
READ MORE... →Salient to Investors: Paul Zemsky at ING Investment Mgmt said housing is a huge part of the economic recovery and if housing prices rise, people generally are more confident. Brad Sorensen at Charles Schwab said consumers may say they’re less confident, but so far retail sales have held up pretty well. Read the
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co. says 5 of the 7 varieties of deflation are present in the US economy. Commodity price deflation will continue as oversupply continues to swamp demand amid weak global growth and a hard landing in China, which remains export-driven. The slow global
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co writes: There is an important distinction between good deflation caused by excess supply – as after the Civil War and in the 1920s – and bad deflation created by deficient demand – as in the 1930s and Japan over the last
READ MORE... →Salient to Investors: Paul Farrell writes: We are at a market top and an economic turning point. Bernanke’s non-stop cheap-and-easy-money printing presses are loved by Wall Street banks but are bad for the rest of America. His reappointment – certain to become Obama’s greatest domestic blunder – so shocked Nassim Taleb
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co writes: The current fiscal and monetary offsets to the powerful deflationary forces are temporary. When deleveraging ends and normal economic growth resumes, the Fed will be forced to eliminate the huge excess reserves. General price deflation is the likeliest
READ MORE... →Salient to Investors: University of St. Gallen economists found that nations that pushed the EU to probe China for product dumping later secured greater trade with her. Lead author Simon J. Evenett said in the last decade, France and Germany made 51 protests, and Italy 41. Trade missions and visits by government ministers to China boosted exports. Michael
READ MORE... →Salient to Investors: Economic data disproves the claim that the US national debt is hurting the economy. Economists across the political spectrum dispute the Rogoff-Reinhart conclusion that countries with debt loads greater than 90 percent of GDP grow more slowly. With borrowing costs near record lows, the cost of paying off the national
READ MORE... →Salient to Investors: Joseph Brusuelas at Bloomberg said Americans are growing more confident about their own financial and economic situations. The sentiment gauge for those making less than $15,000 a year reached its highest level since December 2007. Read the full article at http://www.bloomberg.com/news/2013-03-21/americans-view-on-economic-outlook-climbs-to-three-month-high.html Click here to receive free and immediate email
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