the-federal-reserve

3 reasons Yellen’s FOMC remains dovish

What makes Janet Yellen and a number of other FOMC members so dovish with respect to monetary policy and in particular the trajectory of rate normalization? A Credit Suisse report sites 3 key factors, which Yellen calls “unusual headwinds”:

think

The Scale of Monetary Happiness

Does money really buy you happiness?

learn

Unlearning From Peter Bernstein

By far the best thing I read this week was an article by Jason Zweig. It had nothing to do with current events or risks in the markets. In fact, it was published almost a decade ago for a story in Money Magazine.

myth

The Myth of the Passive Investor

Some investors have such little faith in the merits of active management that they prefer to take a 100% passive approach. We think they may be making more active decisions than they realize.

question-mark-money

Q&A – Ask me Anything

Go ahead ask me anything. I double dog dare you.

printing_money

“Conventional and Unconventional Monetary Policy with Endogenous Collateral Constraints” (gulp)

That’s the title of a new paper by Michael Woodford of Columbia.  Woodford has been one of the more important economic voices regarding the use of QE during the crisis. The always smart David Andolfatto has a nice interview with Woodford discussing the paper and his thoughts.  Here’s a basic summary: It’s not a paper that claims to have given…

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debt

The Problem Is Not Debt?

I’m continually baffled by the inability of economists to connect the dots on the causes of the financial crisis.  This piece by Dean Baker essentially rejects the role of debt in the downturn, but Dean is clearly failing to connect the cause and effect and how debt rippled through the economy. Of course, there were many contributing causes to the…

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incomestatement

Asset Price Gains and Economic Fragility

One of the most important concepts I harp on in my book is the concept of savings versus investment.  When you develop a sound understanding of the monetary system and the capital structure it becomes clear that the way we use these terms on a daily basis is not totally accurate.  In fact, what we think of as our “investments”…

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money_printing

Does QE Finance Government Spending?

There’s been some good discussion in recent days about QE and whether it is actually legal or not.  Frances Coppola, the Telegraph and researchers at the University of Sheffield have all touched on the topic.  The legality of QE is a very murky discussion and one that only courts have the answers for.  But we can begin to get some…

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fear

Chart of the Day: Inflation Fears are Rising

The Great Graphic was tweeted by SoberLook.com, and comes from Deutsche Bank which used EPFR data. The chart depicts the money flowing in and out of the ETFs and open-ended mutual funds that offer investors protection from inflation.

strategy2

Benjamin Graham: Father of the Efficient Market Hypothesis?

“Warren [Buffett], don’t worry too much about making money. It won’t change the way you live. It’ll change the way your wife lives.” – Benjamin Graham

myth

Investment Myth #1: You Too Can Become Warren Buffett

A free excerpt from my new book…Few myths are more pernicious than the idea that it’s easy to replicate what Warren Buffett does….