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Subject: Jimmy Carter

James Earl “Jimmy” Carter, Jr. (born October 1, 1924) served as the 39th President of the United States from 1977 to 1981 and was the recipient of the 2002 Nobel Peace Prize, the only U.S. President to have received the Prize after leaving office. Prior to becoming president, Carter served two terms in the Georgia Senate followed by the governorship of the state of Georgia, from 1971 to 1975, and was a peanut farmer and naval officer.
As president, Carter created two new cabinet-level departments: the Department of Energy and the Department of Education. He established a national energy policy that included conservation, price control, and new technology. In foreign affairs, Carter pursued the Camp David Accords, the Panama Canal Treaties and the second round of Strategic Arms Limitation Talks (SALT II). Carter sought to put a stronger emphasis on human rights; he negotiated a peace treaty between Israel and Egypt in 1979. His return of the Panama Canal Zone to Panama was seen as a major concession of US influence in Latin America, and Carter came under heavy criticism for it. His term came during a period of persistent stagflation in a number of countries, including the United States, which significantly damaged his popularity. The final year of his presidential tenure was marked by several major crises, including the 1979 takeover of the American embassy in Iran and holding of hostages by Iranian students, an unsuccessful rescue attempt of the hostages, serious fuel shortages, and the Soviet invasion of Afghanistan. By 1980, Carter’s disapproval ratings were significantly higher than his approval, and he was challenged by Ted Kennedy for the Democratic Party nomination in the 1980 election. Carter defeated Kennedy for the nomination, but lost the election to Republican Ronald Reagan.
After leaving office, Carter and his wife Rosalynn founded The Carter Center in 1982, a nongovernmental, not-for-profit organization that works to advance human rights. He has traveled extensively to conduct peace negotiations, observe elections, and advance disease prevention and eradication in developing nations. Carter is a key figure in the Habitat for Humanity project, and also remains particularly vocal on the Israeli-Palestinian conflict. (Wikipedia Jan 2010)

Smooth sailing unlikely

Inefficient market portends bumpy recovery

Inefficient markets have consequences that may be prickly for incautious investors.

Markets can be inefficient for different reasons and persist for long periods. The transition between one type of inefficient market to the next is usually a period of strife and uncertainty which may last five to fifteen years. Looking back at how the economy emerged from previous transitions, I note that in each new period, equity prices started at reasonable levels. This was true at the beginning of the Roaring Twenties, the Post WW II Period, and the Reagan Era. It is as if markets, recognizing prior inefficiencies ‘reset’ and start over. However, for the current market to ‘reset’, it will be necessary for equity prices to fall considerably, which will have dire consequences.

Stagflation watch

When will inflation kick in?

Forecasting when inflation will kick in is impossible, because the political situation is so uncertain and conflicted.

The lack of fiscal restraint of President Obama on the healthcare issue, the ’stimulus bill’, and other ‘progressive’ legislation in the pipeline, combined with the jobs-firsts-inflation-last attitude of Fed Chairman Bernanke — leave little room to doubt that sooner or later the United States is likely to enter the realm of double-digit inflation.

Inflation is likely be the final and deadliest blow to the retirement dreams of many Baby Boomers. When the stock market crashes, one can hope for a recovery some day. With inflation, the losses are permanent and final.

US Politics

Why Obama is sacrificing House Democrats

Many Americans see Obama as cold, arrogant, and didactic.

In order to ram through Congress unpopular healthcare legislation that will radically increase the fiscal deficit and decrease the quality of healthcare for hundreds of millions of Americans, President Obama has asked fellow Democrats to ‘fall of their swords’, voting for his bill even though it might cost them their jobs in November 2010.

This article describes how a president that has little regard for the Constitution or historical precedent, with a radical agenda, could, with impunity, do things that few Americans realize.

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Featured articles on inside pages

Stock buybacks

WSJ exposes the 9/11 caper

In a major exposé of misused executive options, the Wall Street Journal ran a front page article, reporting that as stocks sank after the the 9/11 attacks, scores of companies rushed to issue options to top officials. Some executives reaped millions.
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Securities Analysis

Innovative institutional research methods

The Crash of 2008 led to questions concerning the scope and quality of institutional investment research. The flood of open source investment data on the Internet presents opportunities to researchers.There are new ways to manage institutional research, including separation of fact-gathering from data analysis, out-sourcing, student-sourcing, and home-sourcing, financial taxonomy, and semantic wikis.
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US Politics

Why Congress won't kill ACORN

Closely connected with President Obama, the ACORN group of "community organizers" has drawn censure from the Democrat-controlled Congress as a result of investigative reporting by James O'Keefe and Hannah Giles. More ...

US equities

Professor Siegel’s Epiphany

The topic "Baby Boom — Baby Bomb?" was debated by Michael Milken and Professor Jeremy Siegel in April 2006. This debate was featured in BusinessWeek in the article, "When Boomers Cash Out: A buy-and-hold legend sees tough times ahead." Professor Siegel is the guru of the Common Stock Legend.
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US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

Working off the US trade deficit

Foreigners hold $16.8 trillion in US financial assets as a result of selling more goods to Americans than they buy from them. Since the 'deficit' is in dollars, the US has no problem in 'paying it off'. More ...

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2010-11-05 15:03