The “Estimated Energy Costs per Million BTUs” chart from Young Research & Publishing gives you a quick comparison of oil, natural gas, coal, and uranium. As you can see, natural gas offers good value compared to oil. Good ideas will find their way in the marketplace at the right price and tend to evolve over […]
Investing
Special: Two for the Price of Three!
Janet Yellen is the leading candidate to replace Federal Reserve Chairman Ben Bernanke. Some are saying she will be tough on inflation but I’m not buying it. In a 1995 debate on the Fed’s role in controlling unemployment and inflation she said, “When the goals conflict and it comes to calling for tough trade-offs, to […]
Weekend at Bernanke’s
Clearly Fed Chief Ben Bernanke has checked out and has started dreaming about retirement with yesterday’s Weekend at Bernie’s performance. Was Janet Yellen propping him up? And since when did the Chairman of the Federal Reserve become the President of the United States? His comments sounded like talking points sent directly from the White House. […]
How Vanguard Wellesley Won the War
You want to keep this chart on your refrigerator because there’s been a lot of talk in the press lately about 2008. Looking back five years later is always easier than living through it. What the press fails to explain is the emotional and financial toll 2008 leveled on so many retirees. There’s a breaking […]
Bailouts, Sweat Shops, and I.O.U. Nation
On September 20th the Dow Jones Industrial Average will shake-up its roster of names—the biggest change since 2004. The move says a lot about where the country stands today and also the casino mentality of the market. Let’s talk about the casino first. The pit bosses at the Dow are basically timing the market to […]
The Destruction of Money
If you think the Federal Reserve’s struggle with its tapering problem is bad, stay tuned because you ain’t seen nothing yet. Take a look at my chart series below and in a matter of seconds you get a feel for exactly what the Fed has done for the stock market. There isn’t a shade of […]
Hedge Funds Take 25% of Rhode Island’s Profits
Taking a quarter of the profits in fees is outlandish especially when the profits are a thin as they are for Rhode Island. The Wall Street Journal reports: The Employees’ Retirement System of Rhode Island puts 14% of its investments in hedge funds. One firm it invests with, California-based Ascend Capital LLC, recently offered to […]
Deleveraging is Over
Banks are happy to lend to you when you don’t need the money. For many companies that’s exactly what’s happening as today’s rates are too low to pass up. The Wall Street Journal reports here on the current releveraging. Five years after excessive debt propelled a housing-market collapse into a financial crisis and recession, similar […]
Record Low Rates
“In my 30-year career, I’ve never seen nonconforming loans priced below conforming loans,” said Brad Blackwell, executive vice president of Wells Fargo Home Mortgage. Welcome to Bernanke’s world where the well-heeled can get a Jumbo mortgage rate lower than a conforming one. This puts a hurt on the one group, first time buyers, that Bernanke […]
When Genius Failed
About a third of all hedge funds use a “relative value” arbitrage strategy. The key ingredient being leverage, which is used to suck-up nickels from around the world like a new Dyson DC47 vac. The strategy may look good on paper, but turns ugly when real life gets in the way. As an 80-year old […]