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 I just returned from the World Economic Summit in the Bahamas, where more than 200 attendees met to discuss the outlook for the global economy and the stock market. Peter Schiff and Bert Dohmen made the case for a bear market in 2010, and although I’m not as bearish as they are, I am concerned about the recent decline in the money supply (M2). If this trend continues, we will incur further difficulties this year. (I’ll have a full report on monetary policy in the March issue of my newsletter.) Wall Street is struggling to move ahead in the past two weeks as Europe and the Middle East face deterioration in the debt markets.
 The solid Republican victory in the heavily Democratic stronghold of Massachusetts is sending a clear message to Washington: a big "no" to health-care reform, higher taxes, and irresponsible deficit spending. Did the Fed Chairman Ben Bernanke know in advance that a financial crisis was coming in 2008? In an interview for Time magazine’s Person of the Year issue, Bernanke denied knowing that anything serious was amiss. Yet… three years ago, I was in the audience at a luncheon sponsored by the American Economic Association (AEA), the annual gathering of professional economists. Bernanke gave a dry speech called "Central Banking and Bank Supervision in the United States."
We investors fought long and hard for tax relief, and finally got it in 2001 with a cap of 15% on taxes for dividends and long-term capital gains. Now, that’s all unraveling with plans to raise these investment taxes.
Interest Rates Fall: Most of Our Income Stocks Rise The two most influential economists of the 20th century, Milton Friedman and Paul Samuelson, both died at the age of 94. Milton died in 2006, while Paul passed last month. I had the privilege of engaging both Nobel Prize economists in intellectual battles. Actions to Take This Month |
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