Why markets have become so difficult to trade
Fiscal and monetary policies are distorting market signals. Trading in the current environment is like flying an airplane with miscalibrated instruments.
Mr. Dalio, I presume
Hedge fund firm Bridgewater’s AUM has surpassed $120B. Wow! Expect slow growth and high unemployment throughout the developed world for at least another decade. Deleveraging will take 15 to 20 years and we are only four years into it. This will keep interest rates in the U.S. low for years.
Paul Krugman: We need more debt
According to Krugman, all our problems would be solved if we would simply take on more debt. The reason we haven’t had a stronger recovery is that we haven’t assumed enough debt. The time for austerity is when the economy is doing well. So during the latest boom, why didn’t government rein in spending and pay off more debt than it did?
Ron Paul Unelectable?
Granted, Paul is a long shot, but unelectable?
Simon Black: Simple Truths for 2012
Western nations are insolvent. Economic growth is unlikely. Social unrest is the end result, while governments will expand their powers at our expense. When things fall apart, they will fall apart fast. Be prepared.
Chart of Hedge Fund Performance 2011
Take a look at the chart at the top of this article for a quick overview of hedge fund performance in 2011. It’s ugly, just extremely ugly.