Investment Rarities Incorporated
History |  Q & A  |  Endorsements  |  Portfolios  | Flatware | Gold Coins  |  Silver Coins  |  Contact |  Home

Products

Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

..Read More »

The Best of Jim Cook Archive

 
Commentary Of The Month
January 21, 2016
archive print

DREAD THE FED

By David Stockman

There is going to be carnage in the casino, and the proof lies in the Fed’s tinker toy model of the U.S. economy. As you listened to Yellen babble on inflation, only one conclusion was possible. To wit, sell the bonds, sell the stocks, sell the house, dread the Fed! In a global economy that is plunging into an epic deflationary contraction, Yellen & Co still embrace mythical and unmeasurable benchmarks for domestic full employment and other idealized targets.

So as she and her posse of money printers attempt to achieve impossible macroeconomic targets embedded in a tinker toy model of economic reality, there is only one implication. That is, look out below! The march of the junk debt yield curves says it all. The Fed’s heavy-handed financial repression did not trigger a domestic investment boom as Bernanke promised. It simply stampeded yield-starved money managers and retail investors alike into the junk bond market regardless of risk. Stated differently, the major channel of monetary policy that actually worked during the past seven years was the junk debt market. And that $2.6 trillion enterprise in the mispricing of risk was the primary driver of $5 trillion in domestic M&A deals and stock buybacks. Yellen and her cohort have no clue, however, that all of their massive money printing never really left the canyons of Wall Street, but instead inflated the mother of all financial bubbles. So they are fixing to blow-up the joint for the third time this century.