Tag Archives: Wealth Effect

Consequences Of Jack Asset Monetary Policy

Posted on September 12, 2018 by

You have to own assets to make it in the New Economy.   Pity the younger generations. Check out the growing wealth disparity in the below chart, which is clearly the result of monetary policy. The Fed’s increasing reliance  on the … Continue reading →

Posted in Economics, Monetary Policy, Uncategorized | Tagged , | 44 Comments

The New Economy

Posted on March 5, 2018 by

In 1999, I called one of my professors from graduate school who taught monetary theory.  Let’s call him Joe. Here’s a short summary of the conversation: Me:  Professor Joe,  can you believe how big this stock market bubble has grown? … Continue reading →

Posted in Economics, Uncategorized | Tagged , , | 91 Comments

China Obsessed With Wealth Effect

Posted on August 28, 2017 by

We discussed the increasing role of the “wealth effect” in U.S. monetary policy and a key driver of aggregate demand in out last post,  The Gold-Bond Correlation And Other Macro Observations. Nothing compared to China, however. Why are investments so … Continue reading →

Posted in China, Uncategorized | Tagged , , , | Leave a comment

America’s Bubble Dependent Economy

Posted on January 2, 2013 by

Interesting chart (which we marked up) from the JEC of the U.S. Congress illustrating household net worth as a percent personal income.   If that doesn’t look like a head and shoulders formation in the making, nothing does! The second chart … Continue reading →

Posted in Economics, Employment, Politics, Wages | Tagged , , | 5 Comments

Jeremy Grantham CNBC Interview

Posted on November 11, 2010 by

Run don’t walk to CNBC’s extended interview with Jeremy Grantham, chief investment strategist at Grantham Mayo Van Otterloo (GMO).  Click here for the interview. He begins commenting on the Fed’s attempt to stimulate growth through the  “wealth effect,” noting that … Continue reading →

Posted in BRICs, China, Commodities, Crude Oil, Currency, Equities, Gold, Monetary Policy, Policy, Whales | Tagged , , | 1 Comment