Mind Over Market

Marc Faber's Presentation to Hedge Funds World Middle East 2012 March 5-8, 2012, Jumeirah Beach Hotel, Dubai, United Arab Emirates Expansive Keynesian monetary and fiscal policies, instead of smoothing economic cycles, is increasing economic and financial markets volatility instead, Dr. Faber contends in this presentation.

Kyle Bass in his November 15, 2012, letter to investors, exposes the flaws in the monetary excesses occurring around the globe and explains why this will end badly. Kyle Bass

Federal Reserve Chairman Ben Bernanke today told Congress that the central bank has no plans to monetize the sharply rising deficits of the United States and defended the Fed's program to purchase Treasuries. He told Congress of the need for Washington to control spending and set appropriate tax levels, in consultation with the American people, to achieve 'fiscal sustainability' in the long term. By that he meant a situation where the ratio of government debt service to the size of the economy is stable or declining. By Robert Stowe England June 3, 2009 In his appearance before Congress today Federal Reserve Board Chairman Ben Bernanke responded directly to mounting worries about sharply rising budget deficits in the United States, amid growing concern among major international investors in U.S. Treasuries, from China to Saudi Arabia, that the Fed might monetize those deficits. If the Fed were to monetize the debt issued to cover most of the rising deficits, it could lead t...

Government – not the market – played the dominant role in creating the systemic risk we now face, and the government poses a greater systemic risk in the future. “Reining in this risk should be the highest priority, higher than creating a new systemic risk regulator,” says economist John Taylor. By Robert Stowe England May 13, 2009 In the ongoing debate about whether the market or the government played a larger role in the ongoing financial crisis, Stanford University economist John B. Taylor places the greater share of blame on the government. Taylor, a Treasury undersecretary from 2001 to 2005, laid out his case last night (May 12) in a dinner keynote speech at the Federal Reserve Bank of Atlanta’s Conference on Financial Innovation and Crises at Jekyll Island, Georgia. Taylor cites a number of government mistakes. At the top of the list is the Federal Reserve’s decision to keep interest rates too low too long in the period from 2002 to 2005. Taylor faults policy makers for a misdiag...

To maintain the Fed’s independence in monetary policy and its ability to successfully fight inflation (and deflation) the Fed and the Treasury need to sign a Federal Reserve Credit Policy Accord, says economist Marvin Goodfriend. He offers six principles to guide such an accord. By Robert Stowe England April 25, 2009 A call for a Federal Reserve Credit Policy Accord between the Fed and the U.S. Treasury was issued yesterday (April 24) by Marvin Goodfriend, professor of economics and chairman of the Gailliot Center for Public Policy at the Tepper School of Business at Carnegie-Mellon University in Pittsburgh. He was speaking at a symposium conducted by the Shadow Open Market Committee ( http://www.somc.rochester.edu/ ) at Cato Institute in Washington, D.C. Goodfriend’s concern was aimed at the Fed’s decision to provide more than $1 trillion of credit through the Term Asset Lending Facility (TALF) and other arrangements. The effort includes loans to banks and other financial institutions...