Sunday, December 22, 2024
Subscriber Steve F. asked Chuck Butler and me what we meant when we said the Fed and government is destroying the economy and wealth of the nation: “That seems like a subject the average Joe can get his or her head around. Why not put together what that would really look like for us?” We […]
Since the 2008 bank bailouts, readers regularly ask, “what the hell is going on?” I’m not an economist, but I’ll try to explain things – and it isn’t pretty. A major plank in problem-solving is, “Look at the consequences of your decisions, don’t let your solutions cause bigger problems.” Since Clinton repealed the Glass-Steagall act, the […]
Asset prices soaring to ridiculous levels, well beyond anything regarding true, intrinsic values creates a bubble. Eventually things come crashing down. Those holding overpriced assets lose a lot of money and the ripple effect can cause economic hardship to many others. Ozak Durmus tells us about “Tulipmania“: “Tulipmania was the first major financial bubble. It happened […]
Since the repeal of the Glass-Steagall Act in 1999, the role of the Federal Reserve has changed. The Fed used to be owned by banks while high-risk investment houses were separated and not considered part of the banking system. Since the repeal, banks have consolidated where the top four banks now account for 50% of all US […]
What the heck is going on? In the fourth quarter, I was housebound due to medical issues. When cleared to travel in late December I bought tickets to spend Christmas with the grandchildren. I was shocked, airfares doubled over last year. Might it be because I was a last-minute flyer? When I booked our return […]
There’s a substantial amount of fear in the market. At one point on Monday, the Dow Jones was down more than 1,000. This may have been for a number of reasons. One, the Federal Reserve may have to get aggressive with interest rates in order to slow inflation. “Over the past month, the Federal Reserve […]
The public is on to the Fed’s inflation game! The Fed called it “transitory”. Baloney! The Fed announced: “…it is accelerating its removal of monetary support for the economy, citing a rise in inflation that has seen the biggest jump in prices nearly 40 years. In a move to cool growth, policy makers also said they expect to […]
With earnings season coming up, we’re seeing some unusual action in big bank options. The expected rate increases from the Fed in 2022 mean that banks could see greater profitability from their interest rate spreads. This is leading to expectations of strong guidance from banks during earnings season. One strategist is using a covered call […]
Dear Reader, Each quarter, my favorite earnings conference call comes from Starwood Property Trust (STWD) and its CEO, Barry Sternlicht. As the leader of both the publicly traded REIT and the private equity firm he founded, Starwood Capital Group, Sternlicht is excellent about sharing his thoughts on a wide range of financial topics, and recently […]
Inflation is what everyone in the market is talking about these days. The financial markets are concerned that the Fed will have to hike rates much sooner than expected. Higher rates will significantly impact fixed income products like Treasuries and corporate bonds. Perhaps that’s why an institutional trader purchased 160,000 put spreads in iShares iBoxx […]
