News Commentary Archive
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A Crazy Proposition
I read an article in CNN written by economist Steven Kyle. The article is spot-on discussing the chain of events that could happen if the United States were to default its debt. His solution is quoted below: “Were I advising a low-income country that had no choice but to listen to my advice, I would [...] -
Who Holds the Federal Debt?
You and I are holding most of the debt. I will not go into the details but I will refer you here: http://innovation.cq.com/media/debt_components/. While watching Obama and the Rep. representative hurl accusations at each other like little kids on a playground I cannot helped to think we are kind of doomed. For politicians is all [...] -
The Debt Ceiling – 25 Millions Away
I have been reading about international debt and the PIIGS (Portugal, Ireland, Italy, Greece and Spain) ever since I took a derivatives seminar. However, the United States is very close to the precipice because of their excessive borrowing and the increase in the nation’s debt. See, there is a fight in Congress about whether the [...] -
Stock Market Efficiency
According to investment theory, the markets are efficient. By efficient it is meant that all the information related to an equity is known by all investors and the price paid in the market is the correct price. In addition, arbitrage does not exist as all investors that see the arbitrage will trade to take advantage [...] -
Stock Market under Pressure
According to the Investors Business Daily the stock market is still under pressure. The NASDAQ closed below the 200-day moving average today. I got a long signal on the QID etf last week. If you are going long, tighten your stops and thread with caution. Some of my short positions are still working and some [...] -
The Stock Market is Showing its Age.
On the post dated April 19 and entitled The Market is Turning and not Because of Goldman Sachs. we declared that the stock market was overdue for a correction. Now, that was over a week ago. The stock market is starting to show its hand and we uncover two pieces of evidence: one from blog [...] -
Run to the Hills
The Investors Business Daily conducted a poll in August of 2009 to gauge the sentiment of doctors nationwide. Approximately 45 percent of the physicians will consider closing their practice if the Obama health overhaul gets approved. “Of the physicians queried, 45% said they’d consider closing their practice or retiring early if the overhaul then being [...] -
Hyperinflation
I read an article on seekingalpha.com about the possibility of hyperinflation in the United States due to the huge expansion of money stored at the federal reserve banks. One of the most extreme cases of hyperinflation ocurred in Germany in the 1940′s. The value of the paper money was less than the value of money [...]