Bonds are “a terrible investment” right now, Berkshire Hathaway BRK.A +1.27% Chairman and Chief Executive Warren Buffett told CNBC Monday. He recommended holding a comfortable amount of cash but otherwise investing in “productive assets”, and called having a set asset-allocation strategy “silly.” Bond prices are artificial right now given the Federal Reserve’s purchases of $85 billion a month, “and when that changes, people could lose a lot of money.”
Telegraph Excerpt and Link, by [...]
by Phoenix Capital Research
Since the EU Crisis went into overdrive in 2010, EU politicians have largely resorted to political posturing rather than implementing any actual financial solutions to the EU’s debt and banking crisis.
To clarify that statement, we view a “real solution” as one that A) cleared bad debts from the system, B) brought debt levels down to manageable levels, and C) got the troubled country’s economy back on track.
Congressman Predicts Economic Riots in America
According to Rep. John Fleming, we won’t be getting out of the woods anytime soon, especially with Obama at the helm. “It looks like we’re going to have to go through the same or similar pain [as Greece] to get real reforms,” the Louisiana Republican told the Daily Caller on Sunday.
He said that if the current economic trend is not reversed, “what’s going to happen is [...]
Bill Gross’ (likely accurate) description of the fiscal cliff and its resolution in 140 characters or less: “Deeper than advertised. It’s a Grand Canyon. Washington will defer entitlement cuts and raise revenues only marginally.”
In the past, incumbency was an advantage, not just in US elections but in every advanced industrial democracy with a reasonably robust economy. Since the 2008 crisis, incumbency hasn’t proved such a prize – with the notable exceptions of Angela Merkel, who limited her calls for austerity to other countries, and Barack Obama, who would have spent even more on stimulus if congressional Republicans had let him. Now, he [...]
Tough choices if Obama wins but loses popular vote
Washington: An uncertain four years could await President Barack Obama if, under one possible outcome of Tuesday’s election, he clings to power despite losing the popular vote to Republican Mitt Romney.
Never before in US history has a sitting president won a second term without winning the popular vote. This year, it’s within the realm of possibility. A very tight race seems to [...]
Gene Sperling, director of the White House’s national economic council, said today at an official meeting that “we need a global minimum tax”:
“He supports corporate tax reform that would reduce expenditures and loopholes, lower rates for people investing and creating jobs in the U.S., due so further for manufacturing, and that we need to, as we have the Buffett Rule and the individual tax reform, we need a global minimum tax so [...]
Jasjit Bhattal, the highest-ranking ex-Lehman executive at Nomura Holdings (8604.T), resigned on Tuesday after the wholesale division he led suffered heavy losses and forced the Japanese investment bank to scale back its global expansion.
The departure of Bhattal is the latest blow to Nomura’s ambitions to join the elite ranks of global investment banks following its acquisition of Lehman Brothers’ European and Asian operations after the storied Wall Street firm [...]
Promoting Economic Growth
An open-ended stimulus should be promoted, says Stephen Roach, Morgan Stanley Asia Non-executive chairman.
American consumers have too much debt, not enough savings and are afraid they will lose their jobs—if they haven’t lost them already.
It might be time for something that hasn’t been done since the 1930s to get Americans spending again: national debt forgiveness, Stephen Roach told CNBC Monday.
A stronger dollar [...]
By PAUL RYAN
During the negotiations over raising the debt ceiling, President Obama reportedly warned Republican leaders not to call his bluff by sending him a bill without tax increases. Republicans in Congress ignored this threat and passed a bill that cuts more than a dollar in spending for every dollar it increases the debt limit, without raising taxes.
Yesterday, Mr. Obama signed this bill into law. [...]
The Obama administration has never been backward about leaning forward on Fox News. The network has proven a durable, go-to villain to rally the base and stoke indignation against a perceived antagonist on the right.
But White House press secretary Jay Carney, going after Ed Henry from Fox News on Wednesday, misfired all over the place by also insulting House Speaker John Boehner for being a “showboat” [...]
The Washington Times
“Mendacity is a system that we live in.”
- Brick, “Cat on a Hot Tin Roof”
In the weird world that is Washington, men and women say things daily, hourly, even minutely, that they know deep down are simply not true. Inside the Beltway, we all call those utterances “rhetoric.”
But across the rest of the country, plain ol’ folk call ‘em lies. Bald-faced (even bold-faced) [...]
President Obama insisted Friday he was prepared to make “tough choices” for a sweeping deficit-reduction deal to avert a U.S. default, despite being warned by Democrats not to make too many concessions.
With the deadline to raise the U.S. debt ceiling now just 11 days away, Obama appealed for compromise by both parties as he and the top Republican in Congress, House Speaker John Boehner, [...]
We all know this deal is getting done no matter what. Can anyone recall the last time the Teleprompter held a press conference at least every other day on a topic? He even took questions last week. The ponzi must continue.
The most enjoyable aspect it watching Propaganda Joe on MSNBC in the morning when they bring on clown shoes like Harold Ford Jr. to paint [...]
The House of Representatives is set to vote on legislation today that would cut spending by $1.8 trillion over the next 10-years and includes a new provision to “cut, cap and balance” the budget, but does not leave room for any additional tax increases.
Even if it passes the House, it is not likely to pass the Senate and certainly won’t make it past President Obama’s desk. He’s [...]
House Speaker John Boehner (R-OH) issued the following statement today after the Administration announced that the President would veto H.R. 2560, the Cut, Cap, and Balance Act of 2011. The House is expected to vote on this legislation tomorrow.
“It’s disappointing the White House would reject this common-sense plan to rein in the debt and deficits that are hurting job creation in America. While [...]
WASHINGTON — President Barack Obama held a news conference late Wednesday morning, his first formal question-and-answer session since high-stakes debt and budget negotiations began.
Obama opened with comments about spurring the economy and job growth, touching on the deficit talks that have occupied Vice President Joe Biden and congressional leaders over the past several weeks.
“There are steps we can take right now that will help businesses create new jobs here in [...]
Scroll down to where it says: “Debt Review”
“The Treasury Department has said the U.S. risks defaulting on its debts starting Aug. 2 without an increase in the ceiling. Moody’s Investors Service this month said it will put the U.S. government’s Aaa credit rating under review for a downgrade unless there’s progress on increasing the limit by mid-July.”
White House says debt ceiling deal must be balanced
“White House [...]
WASHINGTON — President Barack Obama will wade into the angry impasse over raising the US government’s borrowing limit next week, hosting meetings with rival Senate Republican and Democratic leaders.
Obama’s intervention follows a Republican walkout from crucial talks on the issue and warnings by top party leaders that they will not accept White House demands to close tax loopholes and hike rates on the wealthiest [...]
White House says debt ceiling deal must be balanced
“White House press secretary Jay Carney said the administration was confident it could reach a deal, but repeated its position that this must include revenue raising measures as well as spending cuts.”
US lawmakers harden positions on taxes, spending
“Republicans and Democrats dug in their heels on Friday as President Barack Obama prepared to wade into a divisive debate over taxes [...]
Europe May Withhold Half of Greek Payment to Pressure Athens
EURO GOVT-Greek, Italian CDS rise as periphery hit
New bailout may buy only months for Greece
Euro Weakens as Greece Election Proposals May Worsen Debt Crisis
Greece faces power outages due to austerity strike
Citi says Greek debt may be contagious
Germany ‘dismisses Greek debt compromise plan’
Moody’s Cuts Tepco to Junk
Greek Default Spells ‘Havoc’ for Banks a Year After Bailout
Companies face extra billion pounds a [...]
The U.S. government is following a course of action that is creating a zombie banking system, while it still has the choice to do otherwise, according to John Hussman.
Hussman believes that, while the global economy may appear to be in a rough patch, the world could move forward from this position if it made some tough choices.
With fiscal and monetary palliatives stretched to their limits, [...]
WASHINGTON (Dow Jones)–Federal Reserve Governor Elizabeth Duke Tuesday painted a grim picture for the U.S. consumer, underlining how many Americans are still hurting from the devastating financial crisis of 2008 and 2009.
In prepared remarks at a financial education conference in Boston, Duke said higher gasoline prices were forcing many consumers to make tough choices, given their limited budgets.
“Family incomes have not kept pace with rising costs and many families, particularly [...]
by Tim Pawlenty
In the third year of Barack Obama‘s presidency, unemployment is at unbearable levels, gas and food prices are skyrocketing and federal government spending is out of control. “ObamaCare” is unconstitutional, and it is already driving up health costs — not reducing them.The president’s policies simply aren’t working. And more than that, he won’t even tell us the truth about the problems we’re [...]
Indiana Gov. Mitch Daniels continues to keep the political world waiting, saying recently that he will announce “within weeks” whether he will run for president in 2012.
The Republican’s decision — which could come as soon as Thursday at the Indiana Republican Party’s spring dinner, where his wife, Cheri, will be the keynote speaker — could have an impact well beyond just one man saying yes or no, however.
The GOP [...]
Today, the House Committee on Oversight and Government Reform called Governor Scott Walker (R-WI) and Peter Shumlin (D-VT) to testify in a hearing titled “State and Municipal Debt: Tough Choices Ahead.” Much of the hearing was spent probing Wisconsin’s spate of anti-union restrictions it recently passed.
At one point, Representative Dennis Kucinich (D-OH) confronted Walker about his crackdown on public employee unions. The congressman referenced [...]
via ABC News:
President Obama says he’s been doing “a lot of praying” in recent weeks while faced with tough choices on Libya and other crises at home and abroad.
“I am praying that I’m making the best possible decisions, and that I’ve got the strength to serve the American people well,” he said in an interview Tuesday with ABC News’ Diane Sawyer.
While the president has not shied away from [...]
NEW YORK (AP) — High fuel prices are putting the squeeze on drivers’ wallets just as they are starting to feel better about the economy. They’re also forcing tough choices on small-business owners who are loathe to charge more for fear of losing cost-conscious customers.
Gasoline prices rose 4 percent last week to a national average of $3.29 per gallon. That’s the highest level ever for [...]