The Future of Public Debt

Extremely interesting piece from John Mauldin on public debt, its trajectory and its impact on the economy in this great recession. A few snippets with the link to the full piece, triggered by a paper from the BIS. Definitely worth a reading. “The politics of public debt vary by country. In some, seared by unpleasant experience, there is a culture of frugality. In others, however, profligate official spending is...

S&P Earnings

Intersting charts from The Chart Store. Worth a look and a bit of thinking about whether the market is cheap or not. ...

Asset Allocation May 2009

Just in case you wondered… This is my current asset allocation (excluding real estate and debt) in this current troubled times. Just a tiny increase in gold – buying gifts for my wife )): Cash or equivalent:            88% Equity (EM):                     7% Gold:                              ...

BofA needs 34bn$

Somebody please help me understanding this: BofA, capitalization 74bn$, needs to raise 34bn$ because it is apparently failing the requirements of the stress test. This would probably mean a diluiting of 50%. Yet the stock is up 7%. Below from Yahoo! finance: NEW YORK (AP) — Bank of America Corp. stock rose as investors appeared comforted by reports that the bank has the means to cover a potential $34 billion...

FED’s secret plan against inflation

Please take a few minutes to watch this hilarious video from the onion network. Brilliant as usual, it highlights FED’s secret plan to reduce money supply and therefore prevent inflation from kicking in after such mussive printing. Treasury Department Issues Emergency Recall Of All US Dollars ...