What “Experts” Miss about Economic Inequality

That’s a question USA Today posed to three “policy experts on the left and the right” in this recent article . The responses, while unsurprising, were nevertheless disappointing. For libertarians, economic inequality itself is not problematic, as long as it is in the context of an unfettered market economy free of government privileges and interference. Source: What “Experts” Miss about Economic Inequality Continue reading What “Experts” Miss about Economic Inequality

Guilt Is Not a Feeling …

By Matthias Paul Kuhlmey. … is what I learned from a dear friend some years ago. Apparently, guilt is a “derivative” of fear, when accepting the fact that there are only two basic life emotions: love and fear. Mr. Bill Gross, renowned asset manager and co-founder of a fixed income empire (California-based PIMCO), broke the news last week that he feels “guilty” for having enriched … Continue reading Guilt Is Not a Feeling …

Atlas Shrugging …

By Matthias Paul Kuhlmey. Envision the early 1950s – a young Alan Greenspan, in his late twenties, was already looking back onto one of his early life dreams, or, according to the Maestro himself, his “first love” – Music. Yes, in case this is news to you, Alan was quite the “rocker” and dropped out of renowned music school, Juilliard, to join the traveling swing band, Henry Jerome and … Continue reading Atlas Shrugging …

The Starbucks Syndrome

By Matthias Paul Kuhlmey. Just when this cozy comfort feeling is settling back into our investing minds, numerous market participants are ringing the alarm bells: markets 30% overvalued, a major crash to come, “get out now,” just to list a few of these notions. As we stated in our recent entry, Of Milk and Chocolate, U.S. Equity markets may statistically have become the “safe bet” to capture asset … Continue reading The Starbucks Syndrome

Dancing on the Ceiling

By Matthias Paul Kuhlmey. Nothing can take this market down – U.S. equities are “flying high,” and not even the biggest municipal bankruptcy in U.S. history can derail the good momentum. After the city of Detroit’s Chapter 9 filing, the necessary question is being asked: who is next in line to shed unwanted obligations? Prominent contenders are Chicago, Cincinnati, and Minneapolis, among others. Just last … Continue reading Dancing on the Ceiling

Notoriously BIG

Recent volatility in bond markets has spooked countless investors, as this particular allocation choice is considered to be safe and “less risky,” especially when compared to investments in equity markets. This commonly held view, paired with an artificially low-yielding investment environment, has been supported by a sharp increase of global issuance activity; in 2012, global bond issuance totaled $5.6 trillion, a 10% increase from 2011, … Continue reading Notoriously BIG

Electric Avenue

Posted By: Matthias Paul Kuhlmey It all starts quite unassuming – a 7-minute boarding delay due to late aircraft arrival, some “weather”, but a lot of good will and optimism regarding the newly declared “wheels up” time. After one hour sitting on the tarmac (known as “runway” for our European friends), the moods are heating up … three hours into the dilemma, anger and frustration are … Continue reading Electric Avenue

Big in Japan

Posted by: Matthias Paul Kuhlmey Here is a good riddle: What two sovereign nations did the IMF just declare can practically be considered “Zombielands,” as their debt burdens have reached levels that cannot even be balanced over the next 5 years? Hola, Spain and Konnichiwa, Japan! Japan, in fact, is one of the most indebted countries on the planet with gross government debt at 230% of … Continue reading Big in Japan

Dead Bodies?!

Posted by: Matthias Paul Kuhlmey Strong words: Both the German Chancellor, Angela Merkel, and her Federal Minister of Finance, Wolfgang Schäuble, have recently made comments that the issuance of Eurobonds (a way of sharing the debt burden of Europe, collectively) would only occur over their dead bodies. To my surprise, when sipping the Sunday morning coffee and checking on the “status of the world,” a story in … Continue reading Dead Bodies?!

Dr. Twist

Posted by:  Matthias Paul Kuhlmey Instead of “we told you so,” let us take the high road and begin this blog with “here we (I) go again” (for the music lover, this would be Whitesnake, 1987). Mr. Ben Bernanke, aka Dr. Twist (from now on), is “in it” deep. Ben, it is time to stop the “flip flopping” – either the economy is recovering, or … Continue reading Dr. Twist