Post Tagged with: "Jeremy Grantham"
On recessions and earnings volatility
After posting the Jim Bianco article on getting defensive, I traded e-mails with Jim on recessions and earnings volatility. Here’s what he had to say after I showed him the article
Grantham: European and American policy makers are clueless
In America everyone has been bellyaching about the S&P ratings downgrade like its an affront to the greatness of America. This is absolute rubbish. It’s pure denial and economic nationalism. Do you think the Germans would threaten to default on their bonds for purely political reasons? The Swiss? Even the Belgians aren’t threatening to default for no reason and they don’t print their own money. I say S&P should have downgraded the U.S. even more – maybe to Ba for Banana Republic!
Peak Coal and Jeremy Grantham’s Clarion Call on Natural Resources
Coal is one of many natural resources which are in short supply. This article provides one example from India. Jeremy Grantham believes that peak resources is a phenomenon which will pose problems for the global economy in the future. He has written a second consecutive quarterly note on peak resources that this time concentrates on the human suffering
Commodity Prices and Paradigm Shifts
People who are staring at a tsunami of demand for commodities from the developing world and predicting a doomsday of $400 oil and $4000 gold are missing the longer-term retreating tide of demand as citizens of the developed world actually demand decreasing amounts of energy, large goods, and heavy infrastructure. We won’t be packing up and moving to Mars, as the science fiction solutions to resource depletion propose. We will pack up and move into the virtual world
Grantham: “Lighten up on risk-taking now and don’t wait for October 1 as previously recommended.”
Jeremy Grantham is seriously bearish again. In part 2 of his latest quarterly newsletter, he departs from the peak resources argument he made in part 1 and focuses on the overvaluation in stocks. His advice: sell!
Ben Bernanke’s Press Conference
Today marks the first time we are witnessing a regularly scheduled news conference by a Fed chairman in the Federal Reserve’s 98-year history. Most reactions to Ben Bernanke’s performance were positive, meaning he reiterated the themes he has consistently delivered in the past without making any gaffes. But that goes to style; what about substance? Here’s my take
Grantham: ‘Days of Abundant Resources and Falling Prices Are Over Forever’
Grantham: “The world is using up its natural resources at an alarming rate, and this has caused a permanent shift in their value. We all need to adjust our behavior to this new environment. It would help if we did it quickly.”
Comments by Faber, Gross, Roach, and Grantham on the Political Economy
Over the past several days, I have caught some very good commentary by a number of well-known financial industry experts. I wanted to share my own thoughts with you on their commentary, especially in light of my last posts on Eisenhower’s Farewell Address and The New Monetary Consensus. I have featured two of the commentaries
Jeremy Grantham has ‘already started to sell’
This is a must-see video that runs 30 minutes. Take the time to watch the whole thing. It is a real coup that CNBC got Grantham on their program. Overall, Grantham’s view is the same as mine. The Fed should get out of trying to use monetary policy to do fiscal policy. It doesn’t work;
Grantham: Night of The Living Fed
From From Jeremy Grantham’s latest quarterly letter: If I were a benevolent dictator, I would strip the Fed of its obligation to worry about the economy and ask it to limit its meddling to attempting to manage inflation. Better yet, I would limit its activities to making sure that the economy had a suitable amount
Grantham: Finance Goes Rogue
Grantham argues that a disproportionate share of the US economy is devoted to financial services
Grantham: Deflation has won on points
Well, I, for one, am more or less willing to throw in the towel on behalf of Inflation. For the near future at least, his adversary in the blue trunks, Deflation, has won on points. Even if we get intermittently rising commodity prices, which seems quite likely, the downward pressure on prices from weak wages