Federal Reserve Chair Ben Bernanke has coined the phrase ‘green shoots’ to describe signs of an economic recovery whenever positive economic news is heard.
Is he right?
Are the green shoots he sees really signs of an economic recovery?
Not in my opinion. Instead of green shoots, I believe the Federal Reserve Chairman is grasping at green straws. In John Mauldin’s most recent newsletter dated June 22, he makes some very interesting, and admittedly scary, observations; however, I believe Mr. Mauldin’s interpretations are correct. Read more »
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6 months ago, I wrote that you can’t solve a debt problem by accumulating more debt which was the Bush, and now the Obama administration’s approach to solving the financial crisis. I believe taking this approach will not work – and nothing has changed my mind.
Tax revenues are falling while government spending is increasing creating a crisis situation in many states. This crisis could potentially cause traditionally safe investments such as muni-bonds to default, or at the very best, reduce their ratings. Read more »
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The Federal Reserve has expanded its balance sheet by over $1 trillion since last year. In the video I’ve posted below, the inspector general of the Federal Reserve testifies that she hasn’t yet looked into who actually got this money. Unbelievable.
Invest 5 minutes to watch this video – you won’t believe this is actually happening.
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