Wall Street bulls applauded the release of the GDP report yesterday, as the numbers pointed to a reviving economy and a brighter future, despite all the recent turmoil and housing glut. The US economy expanded at an annual rate of 4% in the second quarter, the fastest pace in more than a year.
Exports surged [...]
James Grant has always been one of my favorite economic commentators. He always finds a way to inject a little humor as well as some razor sharp analysis. This editorial appeared in the NYT today. Here’s a sample:
Benjamin Graham and David L. Dodd, in the 1940 edition of their seminal volume “Security Analysis,” held that [...]
First, the mea culpa. August 8th and again last week, I predicted that the lows for this correction had been seen. Obviously, I was wrong by a few hundred Dow points. This just serves to prove that no matter how long you’ve been doing this, the future course of markets is still unpredictable. I still [...]
The sub prime debacle continued last week as BNP Paribas, a large French bank, reported losses in some of their hedge funds. The news caused a further tightening of credit and the European Central Bank, the US Federal Reserve and the Bank of Japan all added liquidity to the market to calm things. While this [...]
