House Speaker Nancy Pelosi unveiled a more than $3 trillion coronavirus aid package Tuesday, which would be the fifth this year. The House is expected to vote on it Friday, but Senate Majority Leader Mitch McConnell says there is no “urgency.” The package is an 1,800-page document, which offers something for everyone.
Buying the dips have made a lot of stock investors money since 2009. And today, a lot of stock investors continue to buy the dips. However, Paul Singer’s Elliott Management says that stocks could drop further, down to half of their February highs. Other analysts forecast the deepest economic decline since the Great Depression.
1) Covid-19 is a severe supply side shock, but main street will bounce back once the public health separation orders are relaxed in the months ahead. The idea of a Depression is nonsense because main street capitalism does not have a death wish. Households and businesses will creatively find ways to cope, repair, replenish and
With the outbreak of COVID-19 (coronavirus), many economists – including a former Fed president – have called for lower interest rates to head off any recession.
A recent newsletter noted that there has not been a “Black Swan” in a while, a “Black Swan” being an event that comes as a surprise and has a major effect on mankind’s affairs. The coronavirus, now named COVID-19, just rendered that observation invalid.
Warren Buffett is considered the most successful investor of our time. One of the indicators that he follows is the stock market’s total valuation to GDP, which is now flashing red. Buffett’s Berkshire Hathaway currently holds in excess of $128 billion in cash. The vertical grey lines in the chart are major recessions. Note how
To “save the world’s economy” in the 2008 World Financial Crisis (WFC), the Federal Reserve led the world’s central banks in printing money, hiking its holdings of T-bills and other bonds – some quite specious – from $900 billion to $4.5 trillion, a five-fold increase.
I read many articles and newsletters about topics that may affect the gold/silver markets. The one I never miss is David Stockman’s Contra Corner. Stockman was Budget Director during Ronald Reagan’s first term. Below is the start of his blog post for Thursday, December 19, 2019. “The Turbulent Twenties begin 13 days from now. It
There was a time when going to work for a major U.S. corporation set Americans on a path to the middle class with secure retirements. No more.
The US Federal Reserve and the European Union’s central bank recently announced plans to inject massive liquidity into their respective money markets. However, the Fed denies that its buying is another quantitative easing program while the ECB admits that it is.