Difference Between Fiscal and Monetary Policy

What’s the difference between Fiscal and Monetary policy?

It seems like discussions about these 2 similar, but very different, topics are forever getting confused.

If you’re worried about taxes, deficits, and the debt, is that a fiscal or monetary issue?

I want you to know the difference so you’re the smart one at the cocktail party discussion.

 

QE Did Not Work in the UK

This is a quarter you’re going to hear about Quantitative Easing.

I hate it.

It’s my belief the increased money supply will stay on the books of the banking industry to offset any potential commercial real estate downgrades they’ll be making in the future.

From the banks’ point of view, it makes perfect sense. For you and me, not so good.

How did QE work in Japan and the UK? Not well at all.

 

CLICK FOR FULL ARTICLE – QE DID NOT WORK IN THE UK

Alternative Funding

This week’s diatribe is about off-balance sheet accounting and alternative financing.

I’ve been approached multiple times in the past month or two about investment opportunities funding some activity outside of the normal funding channels (banks or equity financing).

This leads me to wonder how much lending is happening in our economy this way and if it’s under the radar. I don’t like the sound of it.

Listen to my video below.

 

Ten Things Making Me Nervous

If you look back at my 3rd Quarter Preview (here) I mentioned I forecast the 3rd quarter would be up. That’s proving to be a great move (if I do say so myself).

But what makes me nervous?

This article sums up a lot of my feelings.

Does that mean I’m bearish for the 4th Quarter?

I guess you’ll have to wait until my 4th Quarter preview in a couple of weeks to find out.

Click on this link for FULL  ARTICLE

 

Deleverage? No, Default!

Many articles have been written in the past year about the decline in U.S. Household Debt.

This is something to celebrate, right? People are paying off their debt, right?

Wrong. It is almost scary how closely the decline in US Household debt correlates with the charge-offs of mortgage and consumer loans.

People are defaulting, not paying them off.

Click for FULL ARTICLE HERE