Debt Crisis

Why Stocks Will Rally

Regular readers of this blog know that I like to take┬áreasonable contrarian stances; I don’t go against the crowd for the sake of it. ┬áThat being said, I know people are turning bearish on the economy and stocks, especially with the current impasse on the debt ceiling issue. Although I’m bearish on stocks in the short to intermediate term, I’m very bullish long term (5-10 years). Let me briefly explain…

No Debt Crisis Resolution in Sight

I watch in amazement as our leaders practice a form of inadvertent comedy with their complete bungling of the debt ceiling issue. I don’t care what they say: a) the debt crisis will not be resolved with their proposals, and b) we are most certainly in a recession. The debt default in America that was once deemed impossible is now being discussed at the highest levels. Interesting, yes? The arguments…

The Debt Crisis: Stupidity Reigns Supreme

It brings me great joy that another record high in gold was greeted with yawns. Without popular media frenzy there is no bubble, period. It is just not time yet. I have no doubt that gold is going to several thousand dollars an ounce. The wave of effective defaults is already in motion, first with quantitative easing in America and second with the haircuts for Greek bondholders. The bailouts will…

Oversimplified Debt Crisis Solutions

I’m reasonable enough to admit that there is no “one size fits all” solution to our economic problems- even solutions based on free-market principles. For example, I’m conceptually for balanced budgets, but there is a time and place for government spending. I support free markets, but I can’t deny that sometimes government intervention in the economy works, as was the case in South Korea and China. The debate on our…

The Contrarian’s Time to Shine

The market is such a dynamic system filled with black swans, paradoxes, and anomalies. For example, following the stock market crash of 1987 the American economy boomed, which intuitively doesn’t make sense. If stocks were really a leading indicator, as the efficient market theory implies, we should have experienced a Depression in 1987. All these theories we’ve come to accept are dead wrong, and this is why I approach markets…