by Arnold Joe
Loading ...There have been a lot of things happening in the markets recently but it all goes to support the stagflation is here argument. It seems every inflation indicator shows that inflation is getting worse (i.e. higher) regardless of which country is reporting. At the same time, most countries are also reporting weak growth. Today was […]
Economics:
Canada’s April inflation numbers increased to 0.8% for the month and 1.7% year over year. Canada reported food increased 0.8% in the month and energy prices increased 6.0% (this contrast to the US which strangely enough showed no change in energy prices). Although the year over year numbers are low relative to the other […]
Should North American investors be investing based on an economic environment that is recessionary or inflationary?
As mentioned previously, the US economy seems to be in a bull market as bad news (such as housing or employment stats) results in rising stock markets. If the market responds to bad news by pushing up the stock […]
This funny, shocking and surprising satire tells all about the pre subprime crisis days. Just what happened? How did this American (US) sub-prime crisis all start? Who screwed up? Why was it so predictable and why is the current US governemnt reaction, by cutting interest rates, the wrong course of action. Play the Video below […]
Recession or high inflation?
A stagflation is a combination of a recession and an inflationary environment; the economy is contracting yet inflation is high. If the governments were doing their jobs properly this wouldn’t happen, but since they all want to get re-elected they tried to continuously pump up the economy so that it grows at […]
There were reports out today that Drake Management LLC (a hedge fund) is shutting down its largest hedge fund and may plan to start another. This is a classic example of what exactly is wrong with hedge funds. A hedge fund manager is paid an incentive bonus if the fund that is being managed is […]
Interest Rates:
The FOMC did as expected and cut short term interest rates by 25 basis points and as you would expect they also signaled their concern about inflation even though fighting inflation isn’t their priority.
Economics:
Stagflation from the US might be spreading to Canada as monthly GDP in February dropped 0.2% and the industrial producer price […]
