Musings.

Musings

The world, the economy, the markets, and our lives are dynamic. Events can have a large or small impact on us. They can create excitement, cause fears, raise questions, and spark insight.

Listed here are our most spontaneous, timely, and succinct comments on wealth, life, and more.





  • July 31, 2012 - Happy Birthday, Dr. Friedman

    It is worth celebrating why Milton Friedman, who would have turned 100 today, was so important. (WSJ)



  • July 28, 2012 - Capitalism Defended

    Esssayist Charles Murray defends traditional American capitalism and argues that "capitalism" as practiced today has been eroded by government intervention and destruction of core American values.  (WSJ)



  • July 27, 2012 - Revisionist GDP

    Revisions to historical GDP figures obfuscate that economy stinks.  (WSJ)



  • July 27, 2012 - No Longer Blaming BushClick to enlarge

    GDP revisions show that economy was better than previously reported when Obama took presidency from Bush and was worse during 2010 and 2011 than previously reported.



  • July 27, 2012 - GDP DeflatedClick to enlarge

    The US Bureau of Economic Analysis adjusts nominal GDP (current dollars) to real GDP (in 2005 dollars) by using a price deflator that offsets effects of inflation.  According to revised GDP figures, price changes have become increasingly erratic.



  • July 27, 2012 - Impact of GDP RevisionsClick to enlarge

    The US Bureau of Economic Analysis revised GDP figures for periods during the Obama Administration.  The impact of those changes is shown on the attached chart.



  • July 26, 2012 - Facebucked

    Facebook shares are down to $23.80 after hours following an uninspiring quarterly earnings call, its first as a public company. (WSJ)



  • July 25, 2012 - Take a Bite Out of Apple

    AAPL dropped 4.3% after missing its EPS forecast for the quarter on soft iPhone sales.  (WSJ)



  • July 24, 2012 - Failure to Plan is Planning to Fail

    "Only 31% of ... respondents to the May 2012 telephone survey said they had a comprehensive plan," reports Consumer Federation of America and CFP Board.  Hawk100 can help write your Wealth Alignment Plan. (Investment News)



  • July 23, 2012 - Spanish Bond Yields

    Spainish 10-year debts yield 7.22%, or 5.76% more than the US Treasury pays for 10 years, dragging down global financial markets. (WSJ)



  • July 23, 2012 - US 10-year Treasury Note, 1.434%Click to enlarge

    10-year treasury yields 1.434%. This all-time low, especially when fiscal and geopolitical risks are elevated, is unconscionable.



  • July 05, 2012 - Rationalize Anything

    The byline of an Economist article arguing for more from the Fed reads, "by R.A. | Washington."  RA must be the acronym for Rationalize Anything, such as widely practiced among central banks. RA's arguments are narrow.  Quote, "One hears the argument that higher inflation could hurt the economy by reducing real incomes, leading to less spending. But that's not how it works; if reduced real incomes lead to reduced spending, then you don't get the price increases in the first place."  RA, Fed induced inflation results from excessively rapid expansion of the monetary base, which overwhelms any changes in real demand. See Weimar Republic 1920s, US 1970s, etc. (Economist)



  • July 04, 2012 - Will Barclays Go the Road of AIG?

    The resignation of Barclays CEO Robert Diamond resembles the 2005 regulator-forced ouster of Hank Greenberg from AIG.  Absent Greenberg's steady leadership, AIG's strategy turned to risks that played a central role in the debt crisis.  With Diamond at its helm, Barclays has led the financial industry to better service of its customers.  What's next?



  • July 02, 2012 - 6 Portfolio Review Steps

    Morningstar offers sound advice for a mid-year checkup on your portfolio. (Morningstar)