Professor Laurence Kotlikoff”s paper entitled “Is America Bankrupt?”
Treasury International Capital (by Country) – Click Here
Andy Sutton's Extemporania
Weekly Commentaries and Occasional Observations
Categories: General Housekeeping
Spin Cycle 4/29/2009 Charts
Here are the accompanying charts for our 4/29/2009 ‘Spin Cycle’ podcast entitled ‘State of the Consumer’. The episode may be found at http://www.contraryinvestorscafe.com/sc_04292009.mp3
GM, Starbucks calling 'bottom'
Today’s news headlines were covered with stories of General Motors and Starbucks going on record as saying the worst of the fallout from the biggest financial dislocation in the history of the world has already passed. These calls of bottom are eerily similar to early calls for the bottom of the housing market from NAR econ guru David Lereah (now no longer employed by NAR) and others.
It is relatively amazing how, despite the overwhelming evidence that we have a long way to go at least in terms of economic fallout, so many are fooled. Their lack of understanding comes from a failure to recognize that the Fed cannot print prosperity, savings or real capital. We are now paying the price for decades of failed Keynesian economic policies which center around monetary inflation and the general belief that the economy can be ‘managed’ so that recessions never occur. This is pure nonsense.
So while Starbucks and GM continue call ‘bottom’, ask yourselves these questions: If GM believes the bottom is in, then why does it need billions in a taxpayer bailout? Shouldn’t it be able to weather the remnants of the storm since things are about to get so much better? And if Starbucks thought the bottom was in, why aren’t they canceling earlier plans to close 600 stores and the development of that many more?
As is usually the case, actions speak louder than words.
Welcome to the My Two Cents Blog
Rather than using a forum which generated persistent traffic from those trying to push undesirable material, I am going to be using a blog format. If you would like to contribute your opinion, research, news articles etc, please contact me and I will be more than happy to add you to the list.
The purpose of this blog is make occasional observations and postings of news articles and brief commentary outside what I normally write about in my weekly work “My Two Cents” and our premium service “The Centsible Investor” Ideally, there will be a couple of contributors who help facilitate some discussion on the more important topics.
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