The Rubber Hits the Road – Hussman article

by Kirk Kinder on March 9, 2010

I am a big fan of John Hussman. His recent article, “The Rubber Hits the Road”, hits my thoughts exactly. The Fed and our government through a massive amount of stimulus at the economic downturn. However, this only provides a short term fix. The underlying structural problems still exist and will manifest itself at some [...]

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State Helps Pay Mortgages for Citizens

by Kirk Kinder on March 8, 2010

Here is an interesting article about a program in Pennsylvania that loans up to $60,000 to homeowners who can’t pay their mortgage due to a layoff or other financial strain.
The program, which has distributed $450 million on behalf of 43,000 homeowners since its inception, has an 80% success rate in helping borrowers avoid foreclosure. And [...]

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The Wrong Lessons from Japan’s Defunct Economy

March 8, 2010

Interesting article from Andy Xie, a former analyst at Morgan Stanley who now follows China and the Asian economies. I completely agree with him that our economists are heading down the wrong path. They assume that more stimulus is needed. The reality is the opposite. We have over-indebted our economy and need to deleverage.
The biggest [...]

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My Suspicions about Chuck E. Cheese Prove True

March 7, 2010

Having two young daughters, I have made my fair share of trips to the parenting Hades, also known as Chuck E. Cheese. I have personally witnessed, not experienced, some arguments between parents dealing with the games and table selection. When you are in an environment of hundreds of screaming kids, noisy electronic games, and cheap [...]

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Federal Government Workers Union Make Wrong Claim

March 7, 2010

When I worked at Coast Guard headquarters years ago, I always heard from the civilian employees how they could make so much more in the private sector. They would make these claims as proof that they are “sacrificing” for the good of the nation. I would just pat them on the back and thank them [...]

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Great News for Americans in the 401(k) World

February 28, 2010

Finally, some regulations in the financial services world that actually benefit Americans. The Department of Labor (DOL) recently released proposed regulations that would limit the ability of financial advisers of providing advice to 401(k) participants if the adviser receives compensation from the product provider. What does this mean to you? Imagine you go to a [...]

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The Multiplication of Money – John Mauldin article

February 28, 2010

The economy grew in the fourth quarter by 5.9%, the most in years. The adjusted monetary base is exploding. Bank reserves are literally through the roof. The Fed is flooding money into the system in an effort to get banks to lend. An historically normal response by banks (to increase lending) would have been massively [...]

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GDP Actually 5.9% – Very Small Considering the Stimulus

February 27, 2010

Turns out the U.S. GDP grew 5.9% in the fourth quarter of 2009 compared to the  initial 2.7%. However, the actual sales to consumers was lower than originally reported while inventory replenishment was larger.
Nearly two thirds of the growth in GDP in the fourth quarter was accounted for by changes in inventories, not by final [...]

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FDIC Looking to Reduce Principal for Underwater Homeowners

February 26, 2010

In yet another example that the government has gone mad, Sheila Bair, Chairwoman of the FDIC, is looking at a trial program to reduce the principal for homeowners who owe more than their home is worth.
Under the FDIC program, borrowers would be eligible for a reduction in their mortgage balances if they kept up their [...]

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Senator Dodd Screwing Over American Citizens – So What’s New

February 25, 2010

Senator Dodd is going to introduce financial reform legislation soon, and he will be excluding the provision that dictates brokers act as fiduciaries for their clients. While most Americans have no idea what a fiduciary is or that their broker is not putting their interest first, this hurts consumers. This means that Wall Street will [...]

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