Financial Markets

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Hubris Runs Rampant at the Fed

The FedFinancial MarketsMoney and BanksU.S. Economy

Blog02/23/2024

In a recent interview with 60 Minutes, Fed chairman Jerome Powell gave assurances that the US banking system is sound. Ben Bernanke also claimed almost twenty years ago that real estate markets were not overextended. The hubris must be in the water at the Eccles Building.

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Does the Balance of Payments Determine Exchange Rates?

Central BanksEconomic PolicyFinancial MarketsMonetary Policy

Blog02/14/2024

Some economists believe that the balance of payments is what determines currency exchange rates. In fact, exchange rates are always about the purchasing power of some currencies relative to others.

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Washington’s Planned Theft of Credit Card Benefits

Bureaucracy and RegulationEconomic PolicyFinancial MarketsMoney and Banks

Blog01/29/2024

Congressional Democrats are trying to intervene in a complex and varied market they know little about but that consumers navigate without need of help. This will not end well.

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Time Is Running Out for Construction Loans

Booms and BustsFinancial MarketsMoney and BanksU.S. Economy

Blog01/12/2024

For a long time, banks have sought to keep construction loans “on the books” to collect more interest payments. With a recession looming, these long loans are likely to become delinquent.

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Negative Leverage: The Fed’s Latest "Gift" to Apartment Investors

The FedFinancial MarketsInflationU.S. Economy

Blog01/09/2024

Despite higher rents, investment in new apartments is a losing proposition, thanks to the Federal Reserve.

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Modern Portfolio Theory Is Mistaken: Diversification Is Not Investment

Booms and BustsEconomic PolicyFinancial MarketsU.S. Economy

Blog12/27/2023

While the creator of modern portfolio theory was awarded a Nobel Prize, that doesn't mean the theory isn’t flawed. In fact, it explains very little about investments.

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DC's Debt Trap

The FedFinancial MarketsU.S. Economy

Blog12/16/2023

Federal debt is soaring out of control, and perhaps it is not surprising that the CBO has not updated its forecasts with this debt uncertainty.

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A Rising Stock Market Does Not Drive Economic Growth

Booms and BustsThe FedFinancial MarketsMonetary Policy

Blog12/07/2023

The common belief is that increases in the stock market drive overall economic growth. Expansionary monetary policies, however, are responsible for driving up stock prices even as they simultaneously damage the economy.

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30-Year Mortgages Are Still a Sweet Deal—For People who Already Have Them

Economic PolicyFinancial MarketsU.S. EconomyInterventionism

Blog12/05/2023

Government intervened into home mortgages to subsidize home buyers and make home ownership more "affordable." As with most interventions, the results have backfired as home prices and mortgage rates skyrocket.

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Is ExxonMobil's Acquisition of Pioneer Natural Resources a "Threat to Democracy"?

Economic PolicyFinancial MarketsMedia and CultureU.S. Economy

Blog11/14/2023

According to a Brown University professor, ExxonMobil threatens our democratic republic by purchasing another company. The totalitarian woke atmosphere in American higher education is the real threat.

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