Tag Archives: Fiscal

Guggeheim Partners' Scott Minerd says the stock market is like "the Titanic heading for an iceberg."Look... “Just as an iceberg loomed in the distant darkness to be struck by the Titanic under full steam, so the US economy approaches the distant fiscal drag of 2020 under the full steam of rate increases to contain inflation and an overheating labor market...” He's got a flowery way with words.Fiscal drag? What fiscal drag is he talking about? The government is operating with record...

By Marc Chandler(This post originated at Marc to Market) The idea that monetary and fiscal policy can and ought to be used to ameliorate the business cycle, to avoid the kind of boom/busts that lead to social instability and radical ideologies is a rather modern notion, and it remains somewhat controversial. Many now see it as hubris that policymakers can tame the business cycle. However, for those who subscribe, the general understanding is that policy ought to be counter-cyclical. In a...

By Marc Chandler Originally posted at Marc to Market The short-term solution reached last month to extend the US federal government’s funding expires on Thursday, February 8. Leaders from both parties say they want to avoid another partial closure. Last month, parts of the federal government were closed for three days, which is about par for the course (around half of the government’s 19 shutdowns since 1977 lasted three days). The House of Representatives is planning to vote tomorrow on a...

By Marc Chandler (originally posted at Marc to Market) The investment climate is being shaped by two powerful forces.  First is the very accommodative policy stance. This includes the United States, where despite delivering the fifth rate hike in the cycle, adjusted by headline CPI, remains negative. As the balance sheet has begun being reduced, financial conditions in the US are easier now...

In-depth analysis on Credit Writedowns Pro. By Marc Chandler Through the venomous comments and erosion of trust, the broad framework of what couple prove to be a workable compromise over Greece’s financial crisis may be emerging.   This is not to suggest that the eurozone finance ministers meeting will reach any important decision. Indeed, the Greek Prime Minister has already reduced his finance minister’s role in the negotiations, and it appears Merkel has done something vaguely...