Debt Crisis

Why Stocks Won’t Crash

It seemed like only a week ago when permabears were predicting the appearance of a new bear market that would take out the lows of 2009. The variables all seemed to be there: Greek debt crisis, inflation from higher commodity prices, and worsening economic data in the U.S. Most economic observers believe these kind of variables lead to lower stock prices. As you can clearly see, this is not the…

Some Thoughts On Freedom

In honor of Independence Day and the heroic founding fathers who fought against tyranny, I want to talk about the subject of freedom. I believe we need more voices of reason, like Ron Paul, in these crazy times, and I have no problem being one of these voices. A lot of people live their lives in fear of speaking the truth, but I could care less. No one has any…

The End of QE2

Today we say goodbye to QE2- a failed program that brought few desirable results. Unemployment is down marginally, but home prices double dipped and commodity prices surged, contributing to the inflation we see today. The dollar and bonds are down, which indicates that quantitative easing has adverse consequences for a country riddled with debt. Remember, there was a debt crisis in Europe led by Greece, so the dollar should have…

Gold’s Wall of Worry

The recent surge in stock and gold prices following the market pessimism of just a week ago indicates how volatile markets can be. Although many people, especially gold bugs, are predicting a second leg down in stocks worse than what we saw in 2008, I don’t think this is happening. I believe we are simply in the process of creating a short-term bottom in stocks, gold, and commodities. We are…

Home Prices Rise, But Is It Sustainable?

The Case-Shiller 20-city┬áhome price index showed a 0.7% gain for April, which is due in part to seasonality. Although the weaker markets such as Detroit and Las Vegas were down in April, the majority of markets in the 20-city index were up. There should be a bounce in home prices in the spring and summer months, perhaps followed by further declines in the fall. While we probably haven’t reached a…