Posts Tagged ‘James Grant’

James Grant: Alan Greenspan thinks what everyone else thinks

James Grant: Alan Greenspan thinks what everyone else thinks, but one fiscal quarter later.

Courtesy of Damien Hoffman at Wall St. Cheat Sheet

In a recent Bloomberg interview, James Grant, editor of Grant’s Interest Rate Observer, offered his assessment of Greenspan’s performance as Federal Reserve Chairman.

Grant on how he would grade Alan Greenspan:

“Here’s the book on Alan Greenspan. He thinks what everyone else thinks, but one fiscal quarter later.  He has the lamentable knack, or lamentable tendency or personality trait of needing to be liked, which is not the best thing to have when you’re chairman of the Federal Reserve board.”

“So we saw him bullish on technology in March of 2000. We saw him ever so unhelpfully urge the American homeowner to consider adjustable rate mortgages at the very bottom of the interest rate cycle in the mid-aughts. He is a front-running momentum kind of guy and Wall Street’s full of them. He is just a guy in a business suit. That’s Alan Greenspan.”

Why Grant is a skeptic of Greenspan:
“Here’s the thing about Greenspan. The first — the second sentence of his prepared testimony he comes out against central planning, an audacious stance to take in front of this commission. He is against the Berlin Wall; he was glad it fell — it exposed the hopeless flaws of central planning.  He is in the business of central planning. He, when he was Fed chairman, fixed an interest rate. And the interest rate he fixed did terrific damage from time to time because he told us how he would fix it and for how long.”

“Wall Street is nothing if not observant. And hearing him tell you that the rates will be low for a considerable period, people did what you would expect them to do which is to tee off. And that was the origin of this terrific debt bubble, the shrapnel of which we are paying for to this day and will continue to pay for.”

*****

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Jim Grant: Federal Reserve Would be Shut Down if Audited

More on the interview with Jim Grant

Jim Grant: Federal Reserve Would be Shut Down if Audited

Courtesy of

Jim Grant has been a well respected voice of reason for a very long time – he publishes Grant’s Interest Rate Observer and from the "About Us" page you can get an idea from where he is coming from. Grant’s Interest Rate Observer is an independent, value-oriented and contrary-minded journal of the financial markets. We publish 24 times a year. Our mission is to identify investment opportunities in a range of markets at both extremes of valuation, high and low alike. Without bragging, we like to think that we are the financial-information medium that least resembles CNBC.

Some might consider his type a bear; I call them realists… he has been an opponent of the policies of the (now rogue) Federal Reserve for a long time. Below is a CNBC interview from this morning – again, one must ask why the most powerful institution in the world can be run without any oversight. On the other hand, the scary thought is Congress might one day provide oversight… I don’t know which evil to fear more. 8 Minute Video of sense.

The Federal Reserve’s balance sheet is so out of whack that the central bank would be shut down if subjected to a conventional audit, Jim Grant, editor of Grant’s Interest Rate Observer, told CNBC.

 With $45 billion in capital and $2.1 trillion in assets, the central bank would not withstand the scrutiny normally afforded other institutions, Grant said in a live interview.

"If the Fed examiners were set upon the Fed’s own documents—unlabeled documents—to pass judgment on the Fed’s capacity to survive the difficulties it faces in credit, it would shut this institution down," he said. "The Fed is undercapitalized in a way that Citicorp is undercapitalized."

Grant said he would support legislation currently making its way through Congress calling for an audit of the Fed.

Moreover, he criticized the way the Fed has managed the financial crisis, saying the…
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Jim Grant: The Fed Would Be Shut Down If It Were Audited

Jim Grant: The Fed Would Be Shut Down If It Were Audited

All the more reason for readers to support the Fed Transparency Petition. Must Watch. (link here)

Some key soundbites:

"If the Fed examiners were set upon the Fed’s own documents—unlabeled documents—to pass judgment on the Fed’s capacity to survive the difficulties it faces in credit, it would shut this institution down."
"The Fed is undercapitalized in the same way that Citicorp is undercapitalized."
"I think zero is the wrong rate for almost any economy."
"So great is the slack in the economy that it will be years before there is anything like a murmur from the inflation front."
"15 out of 16 primary government bond dealers are in agreement that the Fed will not move before the year end."
"There are no bad bonds, just bad prices. Treasuries at 2% were a toxic asset."
"Citibank is a rogue bank."

 

 


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Zero Hedge

Senior DOJ Official's Wife Worked At Oppo Research Firm That Produced "Trump Dossier"

Courtesy of ZeroHedge. View original post here.

In what looks to be another embarrassing blow to the FBI’s (already dubious) credibility, Fox News reported Monday night that the senior DOJ official who was demoted last week after allegedly trying to conceal his contacts with the firm that compiled the infamous “Trump dossier” has deep ties to the firm through his wife.

As it turns out, Nellie Oh...



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Phil's Favorites

Life expectancy in Britain has fallen so much that a million years of life could disappear by 2058 - why?

 

Life expectancy in Britain has fallen so much that a million years of life could disappear by 2058 – why?

Courtesy of Danny DorlingUniversity of Oxford and Stuart Gietel-BastenHong Kong University of Science and Technology

via shutterstock.com

Buried deep in a note towards the end of a recent bulletin published by the British government’s statistical agency was a startling revelation. On average, people in the UK are now projected to live ...



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Digital Currencies

No, Bitcoin Won't Boil The Oceans

Courtesy of ZeroHedge. View original post here.

Authored by Elaine Ou via Bloomberg.com,

Concerns about the cryptocurrency's energy use are overblown...

While much of the world marvels at bitcoin’s meteoric rise, another part is focused on an environmental byproduct:

The sheer amount of electricity that crypto-currencies use.

By some estimates, bitcoin’s consumption ...



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Chart School

Weekly Market Recap Dec 10, 2017

Courtesy of Blain.

Before we talk about the stodgy ole stock market, anyone see that Bitcoin?  $11K last week – $16K this week…. and as I write this bitcoin futures are up over $18K. Just another week in the life…. (here is what you need to know about bitcoin futures)

Back to your regularly scheduled program… the S&P 500 rested a bit while a small correction rolled through the massive winners of 2017 in mega cap tech land, but in the end all was well again by Friday.

“The Nasdaq Composite Index was getting a little frothy, so it&...



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Insider Scoop

Vetr Recommends Walgreens As A Strong Buy

Courtesy of Benzinga.

Related WBA Wall Street's M&A Chatter From December 6: DaVita Medical Group, Cleantech-Brighten Holdings, Walgreens-GuoDa Pete Najarian Sees Unusual Options Activity In Walgreens And AT&T The Vetr community has downgraded $WBA to 4-Stars (Vetr) ...

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Biotech

DNA has gone digital - what could possibly go wrong?

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

DNA has gone digital – what could possibly go wrong?

Courtesy of Jenna E. GallegosColorado State University and Jean PeccoudColorado State University

Modern advances come with new liabilities. Sergey ...



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ValueWalk

Tax Bill May Spark Exodus From High-Tax States

Courtesy of FinancialSense.com via ValueWalk.com

The following is a summary of our recent podcast, “Exodus – The Major Wealth Migration,” which can be listened to on our site here on on iTunes here.

It’s looking increasingl...



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Members' Corner

An Interview with David Brin

Our guest David Brin is an astrophysicist, technology consultant, and best-selling author who speaks, writes, and advises on a range of topics including national defense, creativity, and space exploration. He is also a well-known and influential futurist (one of four “World's Best Futurists,” according to The Urban Developer), and it is his ideas on the future, specifically the future of civilization, that I hope to learn about here.   

Ilene: David, you base many of your predictions of the future on a theory of historica...



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Mapping The Market

Puts things in perspective

Courtesy of Jean-Luc

Puts things in perspective:

The circles don't look to be to scale much!

...

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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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