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Tag Archives: MBS

  • Podcast

    Bud Conrad: The Bursting of the Bond Bubble Is Now Upon Us

    And the results will be calamitous
    by Adam Taggart

    Saturday, October 12, 2013, 6:55 PM

    12

    At the recent Casey Research conference in Tucson, AZ, Casey chief economist Bud Conrad stepped up to the podium, reached into his pocket, and pulled out a balloon, which he proceeded to inflate. As it grew, it become clear the word "BONDS" was written across it. For dramatic effect, Bud continued inflating the balloon until it popped. He then looked at the audience and said, "I hope I'm making a point."

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  • Blog
    © Skypixel | Dreamstime.com

    The Unsafe Foundation of Our Housing ‘Recovery’

    Overdependence on subsidies, debt, and unfounded optimism
    by charleshughsmith

    Monday, February 25, 2013, 9:55 PM

    6

    What could go wrong with the housing 'recovery' in 2013?

    To answer this question, we need to understand that housing is the key component in household wealth. And, that Central Planning policies are aimed at creating a resurgent “wealth effect,” as follows: When people perceive their wealth as rising, they tend to borrow and spend more freely. This is a major goal of U.S. Central Planning.

    Another key goal of Central Planning is to strengthen the balance sheets of banks and households. And the broadest way to accomplish this is to boost the value of housing. This then adds collateral to banks holding mortgages and increases the equity of homeowners.

    Some analysts have noted that housing construction and renovation has declined to a modest percentage of the gross domestic product (GDP). This perspective understates the importance of the family house as the largest asset for most households and housing’s critical role as collateral in the banking system.

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  • Blog
    © Skypixel | Dreamstime.com

    QE for Dummies

    Understanding the most outlandish monetary experiment ever c
    by Chris Martenson

    Tuesday, February 5, 2013, 3:25 PM

    38

    A PeakProsperity.com reader recently lamented:

    I have been trying to get my head around the mechanism of QE. Not being an economist or experienced investor I don't really understand a lot of the jargon. The usual simple definition of QE as "thin air money printing" does not satisfy my need for understanding either. Have hunted for a description of QE for dummies that leaves me feeling like I get it, but with no luck. My difficulty is in understanding how thin air money gets into circulation.

    So I'm going to do my best to answer this plea in as intuitive and straightforward a manner as I can. I, too, share the need to understand the mechanism of a process in order to feel like I have a grasp of it.  And I think it's critically important to understand QE (also known by its full name, "quantitative easing") and what it really represents. Because it is, without a doubt, one of the largest market-shaping forces of our times.

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