We are trying to let the banks earn their way out of losses, right? Thoughts on the Macro Paradigm, Arnold Kling | EconLog | Library of Economics and Liberty . Everything the Fed has been doing over the past fifteen months makes sense if you think of their goal as transferring wealth from taxpayers to [...]
Posts under ‘market’
The state of American capitalism in 2009
As we work on fresh new highs in the markets, it’s worth looking at the headwinds now in place for resuming real, organic economic growth. Lending in the critical housing sector is still essentially frozen outside of government support. You are starting to see talk of FHA bailouts, so the critical element of new buyers [...]
Cool financial blog
For those of you into finance, this blog is well worth reading through the past couple months’ posts: Accrued Interest Google Reader found it for me somehow. Best of all, it includes bonus Star Wars references!
Quick market thoughts
At this point, the S&P valuation appears to be more than 60 times trailing earnings and at least 25 times future GAAP earnings (the numbers for this estimate are around $40). While market bottoms usually feature a high P/E this is ridiculous. Do a few calculations with other currencies and you will see that many [...]