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Recall that the initial deaths and related costs are only the first-order effects; policy makers have to consider the second-order effects.Everyone who reckons that the lockdown is needless and more destructive than the pandemic that triggered it has t…

Everyone with any position in today’s market will be able to say they lived through a real Bear Market.In the echo chamber of a Bull Market, there’s always a reason to get bullish: the consumer is spending, housing is strong, the Fed has our back,…

Everyone with any position in today’s market will be able to say they lived through a real Bear Market.In the echo chamber of a Bull Market, there’s always a reason to get bullish: the consumer is spending, housing is strong, the Fed has our back,…

So here’s an April Fools congrats to globalization’s many fools.The tradition here at Of Two Minds is to make use of April Fool’s Day for a bit of parody or satire, but I’m breaking with tradition and presenting something that is all too real…

So here’s an April Fools congrats to globalization’s many fools.The tradition here at Of Two Minds is to make use of April Fool’s Day for a bit of parody or satire, but I’m breaking with tradition and presenting something that is all too real…

Central bank free money doesn’t create collateral or creditworthy borrowers, and without those foundations, the decayed, rotted shack will collapse.In terms of consequential trends, the pandemic is not a cause, it’s an accelerant of shifts al…

Central bank free money doesn’t create collateral or creditworthy borrowers, and without those foundations, the decayed, rotted shack will collapse.In terms of consequential trends, the pandemic is not a cause, it’s an accelerant of shifts al…

We can anticipate a federal bailout of pension funds and one-time aid to state and local governments, but bailouts won’t repair the eroding foundations of tax revenues.As we all know, the federal government can “print” money but state, county and city …

We can anticipate a federal bailout of pension funds and one-time aid to state and local governments, but bailouts won’t repair the eroding foundations of tax revenues.As we all know, the federal government can “print” money but state, county and city …

There are only two ways to survive a decline in income and net worth: slash expenses or default on debt.In post-World War II America, the cultural zeitgeist viewed frugality as a choice: permanent economic growth and federal anti-po…

There are only two ways to survive a decline in income and net worth: slash expenses or default on debt.In post-World War II America, the cultural zeitgeist viewed frugality as a choice: permanent economic growth and federal anti-po…

The feedback loop has reversed: by saving more, people will spend, borrow and speculate less, draining the fuel from any broadbased expansion.In eras of confidence and certainty, people save less and spend more freely. When we’re confident that go…

The feedback loop has reversed: by saving more, people will spend, borrow and speculate less, draining the fuel from any broadbased expansion.In eras of confidence and certainty, people save less and spend more freely. When we’re confident that go…

The collateral supporting the global mountain of debt is crumbling as speculative bubbles deflate.A great many freebies are being tossed in the Helicopter Money basket. That households experiencing declines in income need immediate support is obvious, …

Essential home lockdown reading.The pandemic is revealing to all what many of us have known for a long time: the status quo was designed to fail and so its failure was not just predictable but inevitable.We’ve propped up a dysfunctional, wast…

All bubbles pop, period.The financial elites are pushing a narrative that asset prices, sales and profits will all return to January 2020 levels as soon as the Covid-19 pandemic fades. Get real, baby. Nothing is going back to January 2020 levels. …

This is why it’s imperative to go big now, and make plans to sustain the most vulnerable households and small employers not for two weeks but for six months–or however long proves necessary.That governments around the world will be forced to distribut…