Here's a recent article from the New York Times entitled "New Investment Strategy: Preparing for End Times."It describes a host of "investment" vehicles designed to protect against "tail risk" or "black swan" events -- terms derived from the academic fields of probability modeling, which took over the financial world during the course of the past...
Tuesday, June 28, 2011
Some thoughts on inflation and the economy
Here is an insightful commentary from one of our favorite economists, Brian Wesbury, entitled "Inflation Now and Later."In it, Mr. Wesbury explains how the Fed's mistaken belief that inflation is caused by high employment and strong economic growth is leading them to stay too easy for too long and introducing inflationary pressures into the economy....
Monday, June 13, 2011
Do we have a "dead economy walking"?
Recent weaker-than-expected economic data sent the stock market into a six-day decline, particularly weak employment and manufacturing data. This is bringing back talk of a "double dip" recession, which has never been far from the headlines since the economic recovery began back in 2009 (see here and here for previous posts discussing the "double...
Friday, June 03, 2011
Debunking "we don't make anything here anymore"
By now, everyone is familiar with the argument that America's economic future is threatened because "we don't make anything here anymore."We have highlighted this argument -- and our disagreement with it -- in previous posts, such as this one in which we took exception with arguments that America is left with nothing but a "phony service sector economy"...
