Tag: Federal Reserve

Jay Powell And The Chamber of Secrets

The question investors need to grapple with today is whether or not they believe in the government’s wizardry, or whether they accept the metaphysics of Parmenides and, well, the entire western tradition.

The Dukes of Moral Hazard

The absence of moral hazard is desirable because it encourages good behavior and fosters a healthy and prosperous society. Sadly, moral hazard has flooded our financial system as of late. And the responsibility for this perverse capital system lies at the feet of the dukes of moral hazard: The Federal Reserve.

The Very Definition Of It

The capitalistic social order acquires meaning and purpose through the market. Hampering the functions of the market and the formation of prices does not create order. Instead it leads to chaos, to economic crisis.

The Fed Can’t Stop the Economic Slowdown

Federal Reserve wants to avoid an economic slowdown and they think cutting interest rates may do it. Unfortunately, like a daisy flower in front of an avalanche, the Fed can’t stop the economic slowdown.

Halloween May Be Gone, But The Zombies Are Still Here!

In our most recent newsletter, we outlined one of the biggest challenges facing the US economy going forward: the debt avalanche. And there is no better example of the massive debt increase and it’s increasing risks than “zombie” companies.

A Skip, Hop and A Jump

Living in the San Joaquin Valley – in the heart of California – has it’s perks: centralized locale, mild weather, and fresh fruit. But one thing the valley isn’t known for is clean air. Smog is a way of life here. This is why many people take short drives to the coast to get some […]

Greatly Inflated Expectations

While the broad economy has continued humming along for the last year or so, so have most people’s ‘inflated expectations’ about the direction of interest rates. Depending on how you look at the numbers, we might be in the best of times or we might be in the worst of them.

Living In A Bubble

It is true that there exists a strong correlation between housing and wages: when wages go up, so do home prices; when wages stagnate, so do home prices. Or, at least, they should. Unless you are living in a bubble…

French ‘Fwise’

In 1850 an economist and philosopher that was soon to meet his demise wrote a pivotal essay entitled “That Which Is Seen, and That Which Is Not Seen”.  This essay was my first introduction to his writings, and I ate up his every word like they were – as Daffy Duck might say – French ‘Fwise’.