The Fed has lost all credibility in the markets. On Wednesday, Ben Bernanke was unable to put his money where his mouth is. Earlier, he jawboned on inflation, trying to match the BoE and the ECB in rhetoric, but his actions speak louder than words. He did not raise rates as I predicted.
On [...]

In an interview with CNBC India, international investor Marc Faber says that gold is his commodity of choice right now.
Marc Faber sees demand for commodities to come off in second half of 2008 in India and China. He will rather buy gold at current levels rather than other commodities and sees lot of money [...]

Wow! That was an exciting, but stomach churning day in the markets. The Dow was way down, 358 points. Oil soared to a new high over $140 a barrel. The Euro hit a record against the yen. The TED spread is rising. Did I miss anything? Oh, yeah: gold was [...]

These are the picks of the day according to an article about what international investor Marc Faber is looking at. Despite the article’s bullish call on commodities, I know that Faber is on the record as saying that oil is due for a correction soon. And in Barron’s he mentioned that steel demand [...]

Transcript of the interview with CNBC India here. He’s bearish on oil short-term. He’s bearish on financials and sees bankruptcies in the offng soon. This is a view I share. Bearish on India as well. I’ll be looking to update via the original video, if possible.

Share

Last Monday, I warned of the ill effects that flooding would have on our pocketbooks in the post Floods increase the chances of inflation. Unfortunately, we have seen renewed flooding in the Midwest this week as well. The total impact will not be clear until harvest.
Yesterday, Bloomberg News reported:
The Mississippi River crested at [...]

My greatest concern is deflation. Hence the title of my blog “Credit Writedowns.” However, inflation is still a short-term threat to destabilizing the global economy. The recent floods in the heartland of America is not only tragic, but inflationary due to crop losses. Bloomberg News has reported on its inflationary [...]

Are we headed for a crash in commodities like the one in 1987 in equities? I doubt it. But, I am concerned that the commodities bubble is getting well out of hand. Certainly, the rationale for commodities as an inflation hedge and in a world of scarce resources is well-founded. However, [...]

George Soros talked to the Telegraph, and in an article released today, sounded very downbeat about the prospects for the UK economy. M. Soros also said that their were many fundamental supports for the price of oil, including supply ad denand as well as inflation arguments. But ultimately speculative fervour has driven the [...]

Oil hit $126 a barrel today on production fears. Refiners and firms that need oil to make money seem to be hoarding it as the price rises inexorably higher. According to Bloomberg, “U.S. crude supplies rose 5.65 million barrels to 325.6 million barrels last week, amid increased imports.” In the end, this may [...]