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

Going Down With The Ship: After Raging At Moody's For Downgrade To Deep Junk, Masa Son Pledges 40% Of SoftBank Stake To Lenders

Courtesy of ZeroHedge View original post here.

Last October, in the aftermath of the WeWork and Uber fiasco, we asked if SoftBank, that chronic seed (and not so seed) investor in cash-incinerating zerocorns startups would be "The Bubble Era's "Short Of The Century." Subsequent events have only made our query more pressing: with the global economy frozen, with social distancing and self-quarantine now a mandatory part of life...



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Phil's Favorites

Stimulus package will remain half-baked unless local governments get more of the dough

 

Stimulus package will remain half-baked unless local governments get more of the dough

People still need baked goods even during a lockdown. Frederic Brown/AFP via Getty Images

Courtesy of Stephanie Leiser, University of Michigan

Lawmakers are pinning their hopes on a US$2 trillion package to prop up the U.S. economy and provide relief to individuals and business ravaged by the coronavirus. ...



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The Technical Traders

These Index Charts Will Calm You Down

Courtesy of Technical Traders

I put together this video that will calm you down, because knowing where are within the stock market cycles, and the economy makes all the difference.

This is the worst time to be starting a business that’s for sure. I have talked about this is past videos and events I attended that bear markets are fantastic opportunities if you can retain your capital until late in the bear market cycle. If you can do this, you will find countless opportunities to invest money. From buying businesses, franchises, real estate, equipment, and stocks at a considerable discount that would make today’s prices look ridiculous (which they are).

Take a quick watch of this video because it shows you ...



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Kimble Charting Solutions

Broadest Of All Stock Indices Testing Critical Support, Says Joe Friday!

Courtesy of Chris Kimble

One of the broadest indices in the states remains in a long-term bullish trend, where a critical support test is in play.

The chart looks at the Wilshire 5000 on a monthly basis over the past 35-years.

The index has spent the majority of the past three decades inside of rising channel (1). It hit the top of this multi-decade channel to start off the year, where it created a monthly bearish reversal pattern.

Weakness the past 2-months has the index testing rising support and the December 2018 lows at (2).

Joe...



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Insider Scoop

Why SmileDirectClub's Stock Is Trading Higher Today

Courtesy of Benzinga

SmileDirectClub (NASDAQ: SDC) shares were trading higher on Friday, after the company announced it's now producing medical-grade face shields for health care workers amidst the coronavirus (COVID-19) pandemic.

SmileDirectClub says it has capacity to print up to 7,500 face shields per day and is accepting orders from healthcare org...



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Biotech/COVID-19

Coronavirus treatments and vaccines - research on 3 types of antivirals and 10 different vaccines is being fast-tracked

 

Coronavirus treatments and vaccines – research on 3 types of antivirals and 10 different vaccines is being fast-tracked

Scientific research on the novel coronavirus has progressed at unprecedented speed. Mongkolchon Akesin / Shutterstock

Courtesy of Ignacio López-Goñi, Universidad de Navarra

Just three months after China first notified the World Health Organization about a deadly new coronavirus, studies of numerous antiviral t...



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Chart School

Cycle Trading - Funny when it comes due

Courtesy of Read the Ticker

Non believers of cycles become fast believers when the heat of the moment is upon them.

Just has we have birthdays, so does the market, regular cycles of time and price. The market news of the cycle turn may change each time, but the time is regular. Markets are not a random walk.


Success comes from strategy and the execution of a plan.















Changes in the world is the source of all market moves, to catch an...

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Digital Currencies

Bitcoin Tested As A Safe Haven After Biggest Stock Crash Since 2009

Courtesy of ZeroHedge View original post here.

Authored by Horus Hughes via CoinTelegraph.com,

Gold and Bitcoin react to global panic

Amid all of yesterday's chaos in bond, commodity, and stock markets, with the yield on the 10-year US Treasury note dropping below 0.5% for the first time in history - a strong indicator that investors are desperately looking for safe harbors - two supposed safe-havens in 'alternative currencies' behaved qui...



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Members' Corner

Bloody Mob Sh*t: An Interview with Lincoln's Bible

 

Bloody Mob Sh*t: An Interview with Lincoln's Bible

We talk Trump, Mogilevich, Epstein, Giuliani, Fred Trump, Roy Cohn, and more.

Courtesy of Greg Olear at PREVAIL, author of Dirty Rubles: An Introduction to Trump/Russia

(Originally published on Feb. 21, 20.)

...

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ValueWalk

Entrepreneurial activity and business ownership on the rise

By Jacob Wolinsky. Originally published at ValueWalk.

Indicating strong health of entrepreneurship, both entrepreneurial activity and established business ownership in the United States have trended upwards over the past 19 years, according to the 2019/2020 Global Entrepreneurship Monitor Global Report, released March 3rd in Miami at the GEM Annual Meeting.

Q4 2019 hedge fund letters, conferences and more

The Benefit Of Entrepreneurial Activity ...

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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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About Phil:

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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