Articles By: Frederick Sheehan

Frederick Sheehan

Frederick Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession. He is the co-author of Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve. Mr. Sheehan was Director of Asset Allocation Services at John Hancock Financial Services in Boston. For more than a decade, Mr. Sheehan wrote the monthly "Market Outlook" and quarterly "Market Review" for clients. He is a frequent contributor to Marc Faber's "Gloom, Boom & Doom Report." He also has written articles for "Whiskey & Gunpowder" and the Prudent Bear website, among others. He currently serves as an advisor to an investment firm and a non-profit foundation. A Chartered Financial Analyst, Mr. Sheehan is a graduate of Columbia Business School.

Here are my most recent posts

The Stock Market

The Stock Market

For the fourth quarter of 2013, 103 companies in the S&P 500 have announced negative earnings revisions. Only nine have disclosed positive profit assessments. The ratio of negative-to-positive, 11.4:1, exceeds the previous high (negative-to-positive ratio) of 6.8:1. This is worth consideration. The 6.8:1 silver medalist was during the first quarter of 2001.

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This Is So Depressing

This Is So Depressing

Fred Sheehan provides a compilation of articles and quotes suggesting that the solution to the mortgage problems in the United States bears a striking resemblance to the policies which led to those mortgage problems in the first place.

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Money is Gold

Money is Gold

“With the current policy, [European leaders] will need force to keep it going against the interests of the people. You do not need to be a eurosceptic to conclude that such a monetary union is also deeply immoral.” – Wolfgang Manchau, Eurozone Break-Up Edges Even Closer, Financial Times, March 25, 2013

The People are growing angry. The People will become very, very angry.

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Dissension is Overrated – Part II

Dissension is Overrated – Part II

Bernanke will inflate at an accelerating pace. The other central banks will chase him.

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Canada and Sweden: Here Come Those Experts Again – Time to Go Short

Canada and Sweden: Here Come Those Experts Again – Time to Go Short

The destructive quality of irredeemable credit, understood by some before the U.S. mortgage crash, obvious to more in its wake, was crystallized in the too-low, centrally controlled, interest rates that flushed a bacillus of fake money and credit, even though it was mathematically impossible for overzealous borrowers to produce cash in quantities sufficient to meet loan payments.

Nowhere does The Economist suggest Scandinavian countries are similarly hobbled despite the tell-tale data (published in every issue of The Economist). “The Next Supermodel” is being celebrated, at least partially, as a consequence of medicated interest rates. The Economist could follow its Scandinavian advert with a cover story on another praiseworthy economy: Canada.

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Japanese RORO

Japanese RORO

Akira Amrai, Japan’s economic minister, announced: “It will be important to show our mettle and see the Nikkei reach the 13,000 mark by the end of the fiscal year (March 31)… We want to continue taking (new) steps to help stock prices rise.” The Nikkei must hop 17% in less than seven weeks to meet the government’s injunction. Comparing and contrasting the Greenspan-Amrai eras is an illustration of institutional collapse.

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Going for Broke

Going for Broke

The talk in 2013 has been of the great rotation from bonds to the U.S. stock market. This accompanies a new world record for the Russell 2000 Index (small-cap stocks). The S&P 500 has topped 1,500. It did so twice before, in 2000 and 2007. Here we are, again.

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Bond Math

Bond Math

How did stock prices more than double since investors have dumped stocks and bought bonds? A second question: what might we expect of stock market returns if investors stop taking money out of the market and put it in – 40% a year?

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They Won’t Be Forgotten

They Won’t Be Forgotten

Frederick J. Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession (McGraw-Hill, 2009) and “The Coming Collapse of the Municipal Bond Market” (Aucontrarian.com, 2009) Ed Harrison at Credit Writedowns, adding fuel to the outrage upon the announcement that “Doctor” Alan Greenspan will address the Annual Market Dinner of the Boston Securities […]

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Spain: The balance sheets are beyond repair

Spain: The balance sheets are beyond repair

The banks are slowly admitting losses, but Bloomberg’s summary is of a slow recognition. Even so, writedowns have left the banks stranded: unable to make loans. Up until now, it appears, the banks and the government were able to carry the building gear manufacturers.

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Why oil prices are in a secular uptrend

Why oil prices are in a secular uptrend

By Frederick J. Sheehan Editor’s Note: Edward Harrison will be writing about the logic others feel support he other side of this trade based on views that Deniis Gartman espoused at an investment conference earlier today.  Frederick J. Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession  (McGraw-Hill, 2009) […]

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Greenspan’s Silver Anniversary

Greenspan’s Silver Anniversary

Now, to the hearing that preceded the Senate confirmation vote on August 11, 1987

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