Problems with the Asset Back Security market

In little reported news, there was no issuance of asset backed securities (ABS) last week. Large companies rely on this type of financing to fund their short term needs. The collapse of this market in the fall of 2008 was one of the key reasons that economic activity ground to a halt. Recently, everything looked OK for the ABS market. During the ten weeks prior to July 19th average issuance was $1.83 billion per week. Then suddenly it was zero. … Continue Reading

Do deficits matter?

Deficits Are A Symptom. The Problem Is Spending. You Spend Money, You Do Not Have It Anymore. It’s that simple. This should be obvious to everyone. Below is an article from Dan McLaughlin that perfectly spells out the political and fiscal problem.

The Obama Administration has been in something of a quandary lately as to whether to primarily emphasize its plans to spend more taxpayer money as … Continue Reading

Economy Stalls – Thanks Obama

Greetings Shrewd Investors. I’m on the road for awhile looking at new business opportunities for Bill and I. I received the below article in my in-box from our friends at  Weiss Research and thought I’d pass it along. I agree that this recovery is in serious trouble, but so is our beloved America. There is no quick or easy solution and that’s why Bill and I are looking for businesses that are in the right place at the right time. … Continue Reading

Rearranging deck chairs on the Titanic

Hope is a belief in a positive outcome related to events and circumstances in one’s life. Hope is the feeling that what is wanted can be had or that events will turn out for the best. False hope is holding out hope for something that is truly impossible; something that is so unlikely to happen that we move from the world of reality to the world of delusion. … Continue Reading

Greek Tradegy

I thought I would pass this post along from the Mises Institute. If you have not heard of this economic think tank, then please check them out at www.mises.org. The Mises Institute is based on the work of the late Ludwig von Mises and what has become known as the Austrian School of Economics. There is no real school in Austria of this name, it is an economic philosophy that counters the failed economic thought process of John Maynard Keynes and the present academic and bureaucratic economist advising Washington. … Continue Reading

So What Now?

So what do you do now? Is it a time to buy, a time to sell or a time to hold? I’m getting calls asking these questions. It’s pretty evenly split between going to all cash or buying (what?) on the sell-offs. What I’m not getting is calls from friends saying, “I’m sure comfortable with my portfolio, I think I’ll just hold what I’ve got”. … Continue Reading