Tag Archives: Ben Bernanke

Did Today’s Flow of Funds Report Predict the Fed’s Next Confession?

In return for speaking fees reported to be “at least” $250,000, Ben Bernanke confessed a few of the Fed’s missteps while speaking to guests of the National Bank of Abu Dhabi on Tuesday: “Bernanke says he underestimated impact of subprime … Continue reading

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Tracking “Bubble Finance” Risks in a Single Chart

In his 712-page tour de force, The Great Deformation, David Stockman dissects America’s descent into the present era of “bubble finance.” He describes the housing bubble’s early stages as follows: The American savings deficit was transparent after the turn of … Continue reading

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3 Leftovers from Wednesday’s FOMC Meeting

Here are a few moments from Wednesday’s FOMC press conference that stuck in our heads, all from Ben Bernanke’s comments in his last Q&A as Fed chair:

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Your Guide to December’s FOMC Meeting: Breaking Down the Participants

In “Why the Fed Won’t Taper in December,” we pretended to write the first paragraph of the Federal Open Market Committee’s (FOMC) statement for next week’s meeting. By thinking about the likely mix of upgrades and downgrades to its assessment … Continue reading

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Why the Fed Won’t Taper in December

Post-mortem: After this article appeared on Zero Hedge, reader Rimon commented: September taper was coming as of June meeting and the main reasons it didn’t happen were a) dramatic tightening in financial conditions (front end sell off), b) sharp slowdown in … Continue reading

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P/E Multiples, Deleveraging and the Big Experiment: Sizing Up the Next Bear Market

We last wrote about stock valuation in August, when we looked at three types of P/E multiples and argued that stocks were more stretched than you would think if you only relied on the simplest measure. Since then, we’ve had … Continue reading

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Yellin’ for Yellen: I Must Have Fallen Asleep and Woken Up in 2006

After reading the coverage of Janet Yellen’s Fed Chair nomination yesterday, it feels as though it’s 2006 all over again. Confidence in our central bankers seems to be approaching all-time highs, little more than five years after it collapsed alongside … Continue reading

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Breaking Bad News from the Fed’s Z1: Expansions Tend to Explode Near Current Leverage Multiples

In an earlier article, I argued that the S&P 500 (SPY) is more expensive than you might think if you only compared prices to trailing earnings.  I recommended a different approach that suggests today’s valuation is similar to that of … Continue reading

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For the Next Fed Head, Obama seems to be Choosing between a Yawn and a Hiss

Update (August 1) – I shortened this article slightly from the original. Based on media reports over the past few weeks, there are two clear front-runners in the competition to be named Ben Bernanke’s successor as Fed chairman. Current Vice … Continue reading

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Stock Prices Are Outrunning Corporate Profits: When Has This Happened Before?

In a recent article titled “Step Right Up and Test Your Central Banking Skills against the Scariest Economy of All,” I encouraged readers to: [Apply] your economic and policy beliefs to early 1928 conditions, and then [ask] how your decisions … Continue reading

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