We need Bubbles

One of the most influential financial people on twitter made a flat statement about what is going to be obvious about fiscal stimulus: Economies cannot maintain output without continuous fiscal stimulus. This idea -the economy demands some form of stimulus to operate at full capacity – has long been one of the main ideas behind thisRead More

Fed Decision Day

Today is probably the end of ZIRP, and the fed will probably raise rates. My personal take is Yellen is raising rates for 2 reasons: Yellen gains much credibility from raising rates when it is not really needed. Yellen thinks this gives the Fed additional room to cut rates when needed next time. Raising ratesRead More