Financial Markets
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When Financial Markets Bubble, There’s Something for Everyone
“Whenever something seems bubbly, accusations of tulips and South Sea bubbles are never far away – even though the proportion of people who could actually explain those iconic episodes of our financial past is frighteningly close to zero. Levenson’s account of the South Sea Bubble will not, I daresay, be the last time historians find…
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Accountants Have Learned To Live With Crypto
“Accounting professionals need to learn to live and work with crypto, and standard setters need to be proactive in the creation of crypto-specific standards. Applying standards developed for the 20th century economy to 21st crypto assets is already causing issues, and should be rectified to avoid wider market disruptions.” ~ Sean Stein Smith
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A Suddenly Soaring Stock Price Might Be Bad for Business (Video)
“I went on Cheddar TV to discuss the risk to companies from the wild speculative buying inspired by investor chatrooms. Eventually the fundamentals have to catch up else the highs are unsustainable.” ~ Edward Stringham
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Do These Money Supply Charts Portend Hyperinflation?
“Financial markets indicators suggest that high inflation is not likely. Even with a very large balance sheet, the Fed has proven that it can control inflation by paying high rates of interest on bank reserves. Whether Fed officials choose to do so is the open question.” ~ Thomas L. Hogan
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Presidential Impeachment and US Equity Markets
“The gradual pace of what is fundamentally a political (as opposed to legal) action tends to result in dampened, rather than heightened, volatility. And nearly as soon as any latent uncertainties are ironed out, broader economic trends resume driving the direction of financial markets. A more profound degree of political upheaval, with a more sudden…
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Will the Fed’s “Feelgood” Medicine Cause an Economic Collapse?
“The promise of cheap money leading to perpetual asset price sunshine may seem like a reality today. Tomorrow the consequences will be like Dr. Feelgood’s needles. To avoid the worst, markets—not politicians or bureaucrats, must be free to uncover the real cost of borrowing money.” ~ Barry Brownstein
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Monetary Policy is Pushing Americans, Kicking and Screaming, Up the Risk Curve
“Gamestop is only a symptom. The size and frequency of monetary policy interventions is pushing investors further and further up the risk curve.” ~ Peter C. Earle
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Robinhood and Redditors: Who’s Robbin’ Who?
“We don’t need more regulation; we need better regulation. We need the rule of law not only in monetary institutions but in financial markets too. We need to replace the ‘regulatory leviathan’ in financial markets with ‘a regulatory constitution.'” ~ Roger Koppl
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GameStop, Bitcoin, and the Federal Debt
“The flash mobs, coordinated as they are by social media, have created disturbing and disruptive bubbles and may continue to do so. Bitcoin is probably not in a bubble. Above all, let’s not forget the ominous longer-term debt bubble.” ~ Warren C. Gibson
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How to Navigate the Stock Market Madness
“There is nothing wrong with partaking in recent fad investing trends; some of them even seem quite promising. However, just like anything else, being prepared and knowledgeable will ensure your success is long-term and not just the prelude to disaster.” ~ Ethan Yang
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Equity Performance Amid One-Party Rule in America
“If history (especially more recent history) is a guide, U.S. equity gains over the next two years of full Democratic control will be inferior, a result that is more probable given that the party is currently more anti-business, anti-profit, and anti-capitalist than at any other time since 1970.” ~ Richard M. Salsman
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Paternalism and Robinhood Revisited
“Robinhood and other self-directed apps like it have fundamentally disrupted the market in a good way. Many entrenched interests, be it private firms or the government, are not comfortable with this change. Hopefully, our leaders have seen firsthand the disruption that such abrupt and restrictive actions have on society.” ~ Ethan Yang
