Too Qualified ?

You know the Man’s a "slamdunk" to get through the Senate Confirmation Process when the poltical cartoonists mock the President for nominating someone who’s too qualified — at least when compared to prior nominees:

Too_qualified


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Source:
Newsday Political Cartoon
Walt Handelsman
October 25, 2005
http://www.newsday.com/news/opinion/ny-walt-april,0,2984870.gallery?coll=ny-editorial-cartoon

Category: Economy, Politics

Greenspan History via WSJ

Here’s a fascinating look at "The Maestro" via the lens of the WSJ, circa 1987:

·

Fed Jolt: Nominee Greenspan Shares Volcker’s Goals But Not Yet His Clout 

· On the Spot: Stock Market’s Frenzy Puts Fed’s Greenspan In a Crucial Position

· Fed’s New Chairman Wins a Lot of Praise On Handling the Crash

Read More

Category: Economy

Savings Glut and other nonsense

Category: Economy

New Fed Chair: Ben Bernanke

Category: Economy, Inflation, Politics

The Unpleasant Truth About Inflation

Category: Inflation

The Inflation Evil That Lurks

Hey, guess what? More mainstream media discovery that Inflation is lurking! Yesterday, it was the NYT, today, the WSJ:

"A specter from the past has been haunting the stock market lately, and,
as with most specters, the question is whether this one is mostly real
or mostly imaginary.

The specter is inflation, and until recently, many investors thought it
was dead and gone. Lately, if you believe the Federal Reserve, it isn’t
exactly ba-a-a-a-ck, but it is lurking. The Fed’s fear of inflation,
together with its clear intention to keep raising U.S. short-term
interest rates to keep inflation in check, is the main thing that has
prevented the much-awaited fourth-quarter stock rally from commencing . . .

A few weeks ago, I gave Professor James Hamilton grief over his 45 year chart of the 12 month change in CPI (1960 – 2005). The very long chart, IMHO, makes inflation look more modest versus its long history than say a 5 year chart would.

Indeed, the impact of any longer term charts is that they make major events look like ripples; You can barely see the 1987 crash on a long SPX chart, and even 9/11 is hard to spot on a 10 year Nasdaq chart.

Today’s WSJ also uses a long term chart — 35 years of CPI and Core CPI.  It presents a case that the core underreports inflation. Note that even during the late 1970s peak of CPI, the Core rate tracked the overall index; In 1972-74, however, the Core lagged the CPI appreciably.

That lag is very analogous to the present BLS reporting, and in my opinion, why the Fed is fighting inflation so aggressively.


Note: I modified the WSJ chart, zooming in on the two periods:<spacer>

click for larger chart

Iword_wsj_0232005181209_edit
Chart courtesy of WSJ

 

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The entire article is worth reading; I have more excerpts, and the original chart, after the jump.

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Source:

Specter of Inflation Haunts Dow
While Waiting for Fed’s Fears To Subside, Investors Pull Back, Imperiling an Anticipated Rally
E.S. BROWNING
THE WALL STREET JOURNAL, October 24, 2005
http://online.wsj.com/article/SB113010700627577051.html

Read More

Category: Financial Press, Inflation

Category: Financial Press, Inflation

25 Trading Truisms

Category: Trading

The Unending Housing Boom

Category: Real Estate

Wanted: Death of Equities

As I mentioned earlier, I really haven’t had time to think about what I want birthday-wise. But then I recalled I am still waiting for someone (anyone!) to find this (previously mentioned) August 13, 1979 Business Week magazine for me: click for larger graphic I am willing to pay a fair value for this. I…Read More

Category: Financial Press