When most people talk about interest rates today, they realize the lowest rates can go is to zero. Consequently, they believe at present the bottom is almost in for interest rates and the only thing the future holds is higher inflation and interest rates. But since the economy has not yet recovered, what can the Fed do to stimulate the …
Read More0Jul
30
2010
Apr
27
2010
Do You Buy Real Estate Now or Wait? Part 2/3
By: Doug Eberhardt
Category: Gold
Tags: Austrian Economics, Baby Boomers, Bank Lending, Buy Real Esttate, Consumer Sentiment, Declining Wages, Federal Reserve, GDP, Government Spending, Household Debt, housing bubble, Housing Market, Inflation, Interest rates, Japanese Real Estate Market, Orange County California, REIT's, Retirement Planning, Robert Schiller, U.S. Dollar, Unemployment, Wages
Apr
26
2010
Dec
28
2009
In my continued exposure of those who write articles that misrepresent gold I’ve run across an article written recently by former Ronald Reagan chief economic adviser and current Harvard Economics Professor, Martin Feldstein called “Is Gold a Good Hedge?”
I will dissect Feldstein’s article that is full of what I believe to be deliberate misinformation to confuse readers as to what gold truly represents in today’s economic and investment climate.
Read More0Dec
12
2009
Gold Is Not Falling
By: Doug Eberhardt
Category: Gold
Tags: currency, Diversification, EURO, Federal Reserve, Gold, keynes, medium of exchange, U.S. Dollar, YEN
Recent purchasers of Gold are upset lately with the 8.5% drop in the U.S. Dollar price of gold this week. But what most of these buyers don’t understand is that gold stayed the same. It was what gold is priced in that changed.
That’s right. Gold is just a shiny rock as all the Gold naysayers like to say. It didn’t change in the last week. It’s still a shiny rock. But the U.S. Dollar appreciated of late thus causing the U.S. Dollar price of Gold to fall. To understand this further read on…
Read More0Sep
15
2009
Aug
17
2009
The Banking Crisis is Far From Over
By: Doug Eberhardt
Category: Gold
Tags: bank failures, banking crisis, Economy, FDIC, Federal Reserve, fractional reserve banking, housing bubble
“Failed banks are weighing on FDIC” is the headline in tomorrow’s Wall Street Journal. Banks are being taken over at an alarming rate thus far in 2009. Banks aren’t lending so it is difficult for them to make a profit while at the same time they are trying to resolve their past lending decisions. Individuals are finding it difficult to secure loans with the more stringent FICO requirements. Increasing unemployment is making it difficult for many more to maintain their home ownership. As people who are now or soon to owe more than their house is worth decide to bail on home ownership, the bank will be left holding an unwanted, depreciating asset. This is occurring all at a time when banks may be forced to mark to market their assets, showing their real estate holdings value based on today’s depressed prices thus revealing balance sheets that are becoming ever more weaker.
Read More0Jul
31
2009
Jul
3
2009
Digger’s Friday Triple Play
By: Doug Eberhardt
Category: Gold
Tags: audit, debt, Economy, Federal Reserve, free market, Interest rates, savings rate