TruthSavvy. - Wall Street

Stimulus Or Austerity: Is That The Right Question?

Dr. B. — Sat, 03 Jul 2010 17:23:43 +0000

Investment markets have been unsettled of late, resulting in the worst quarter for major American stock indices since 2008. Are European G20 leaders correct in declaring there is too much debt in the world? Or is President Obama’s team right in pushing for more stimulus? Who holds the real economic insights? Those who say we must borrow our way forward to recovery?

marketwatch.com article: "U.S. stocks close chapter on worst quarter since 2008", by Kate Gibson

Illegitimacy Of Wall Street Profits Exposed By Financial Reform Bill

Dr. B. — Sun, 27 Jun 2010 11:06:18 +0000

The emerging bank reform legislation might be viewed in a singularly positive light if the reforms were not the byproduct of a skewed capital system that made several million Americans undeservedly powerful and rich while Congress slept. One could feel downright hopeful about the future of American banking if moral hazard had not contaminated the land. But too much polluted water has gone under the bridge. The good in the reforms is counteracted by the poisons that produced the need for remedial interventions.

marketwatch.com article: "Big banks face 'jarring shake-up' from new regulations", by Alistair Barr

Call China's Currency Policy What It Is: A Declaration Of War

Dr. B. — Sat, 19 Jun 2010 14:37:11 +0000

As long as the value of the yuan in international trade is not an issue addressable by the international community, China’s policy of growing its money supply (M1 & M2 equivalents) at over 20% annually is the same thing as China declaring war on the world. As thinking people have come to understand, a large country’s monetary policies can impact the long-term economic sovereignty of other countries in the global trade era as effectively as military policies.

marketwatch.com article: "China says yuan exchange rate is not up for discussion at the G-20"

Are "Free Markets" Really Free Without Morality?

Dr. B. — Sat, 05 Jun 2010 17:09:02 +0000

If the truth sets people free, why is America becoming less free on the heels of twenty-five years of “free market capitalism”? Granted, banks could not do every last thing they pleased (although hedge funds pretty much could). But banks did receive enormous breadth of latitude for self-regulation. The theory was that the free market profit motive would facilitate naturally functioning checks and balances. Instead, the whole world got a taste of what happens when virtue sits on the sidelines while greed is empowered as the referee.

marketwatch.com article: "Rand Paul's brand of finance reform", by David Weidner

Does Wall Street's 'Free Market' Promote Real Freedom?

Dr. B. — Sat, 29 May 2010 15:26:07 +0000

Free markets and their attentive politicians are always serving up something new. May’s service — an 872 point Dow Jones blowout — clearly dampens recovery hopes. Is it right that financial markets impact the underlying economy so remarkably? Could a different financial architecture help mitigate this problem — an architecture that does not shortchange honorable merit when it comes to financial rewards?

marketwatch.com article: "Free-market forces have politicians on the run", by David Callaway

The High Price Of Wall-Street's 'Puffed-Up' Money Machine

Dr. B. — Tue, 25 May 2010 06:00:00 +0000

The market’s recent plunge to new closing lows complicates the recovery picture for many market bulls, including people who believe the regulatory reforms underway will eventually cure whatever ails us. Recent market action — including the May 6 ‘Flash-Crash’ — should be unsettling to individuals who think free market mechanisms are all we need.

marketwatch.com article: "U.S. stocks drop into correction on global growth worries", by Kate Gibson

An Unholy Trinity: Congress, The Federal Reserve, And Wall Street

Dr. B. — Sat, 06 Mar 2010 18:02:35 +0000

Are you angry that Congress overspends and the Federal Reserve continues to print money out of thin air? Then why aren't you angry that Wall Street robs small investors through dishonest manipulation of prices? Dr. B. compares Wall Street's manipulation of their money supply to that of Congress and the Fed in this insightful article.

A contradictory investment climate exists because the Fed bombed Wall Street with money. Hedge funds and investment banks don’t care that short-term Treasuries pay next to nothing. They buy Treasuries as collateral in up-leveraging speculative plays, especially in commodities. Wall Street elites expect to recoup the losses of 2008 as well as to grasp massive new profits, even if major indexes top out well short of their former highs later this year or next year.

marketwatch.com article: "Never seen anything like it", by Mark Hulbert

In An Age Of Unsustainable Global Debt, How Should You Invest?

Dr. B. — Thu, 25 Feb 2010 02:02:58 +0000

Is there a global debt bomb waiting to be detonated? If so, will it create rampant anarchy in America? Maybe in Great Britain, too? Does an apocalyptic world await? Is the coming world worth fighting for? Increasingly, people believe these questions are worth exploring, evidenced by the size and nature of audiences generated by writers like Marketwatch’s Paul Farrell.

marketwatch.com article: "How to invest for a global-debt-bomb explosion", by Paul Farrell

Should Wall Street Follow Tiger Woods And Apologize For Its Immorality?

Dr. B. — Sat, 20 Feb 2010 04:19:13 +0000

Wall Street could learn a few things from the Tiger Woods apology on February 19. Wood’s detailed apology is an important step toward a gradual rehabilitation of his image. Nevertheless, the healing will not be easy. Nor should it be. People who commit grand larceny often receive heavy fines and spend considerable time in prison. Woods faces the prison of public opinion as well as the loss of endorsement revenue. He stole a lot from his wife, kids and supporters. He is deserving of his reward.

marketwatch.com article: "Tiger Woods blames the Media, of course.", by Jon Friedman

Would You Choose Economic Growth Over National Autonomy?

Dr. B. — Mon, 25 Jan 2010 07:00:00 +0000

A nation borrowing its way toward financial insolvency is not staging an economic recovery even when GDP picks up and the stock market rises. Some people talk about the “recovery of growth” like it is the ultimate goal of American life. What is this recovery that we supposedly need? It is nothing but debt facilitated GDP growth and asset inflation to create a built-in reward for leveraged mega-investors. That’s how Wall Street banks “create” the money to pay big bonuses.

marketwatch.com article: "10 reasons Obama is failing 95 million investors", by Paul Farrell