Outside the Box, October 2016

Hoisington Management Quarterly Review and Outlook, 3Q 2016

October 26, 2016

By now, you are probably aware that the US budget deficit jumped to $590 billion for fiscal 2016. What you might not be aware of is that US government debt rose by $1.4 trillion last fiscal year. That difference between the deficit and debt increases is an enormous number, and I bet you’re just as curious as I was to know what in the heck we spent that additional $800 billion on.

In this week’s Outside the Box, my friends Dr. Lacy Hunt and Van Hoisington actually tell us the answer to that...

Restoring America’s Economic Mobility

October 19, 2016

I can remember writing in the ’90s and early 2000s that one of the great things about the United States was our economic mobility. By that term, economists mean the ability of people to shift around on the economic spectrum – to move from being a low-income family to being a high-income family, for example. Karl Marx, in the 1850s, even cited the US as an exception to his struggle-of-the-classes theory, because the economic classes in the US kept changing so much.

The last few years have seen...

Desperate Central Bankers

October 12, 2016

I have been pounding the table over the mistakes made by central banks all around the world for some time now. When I started I was almost alone because markets were still going up and are no there were obvious market overvaluations. My argument back during QE3 was that over time an uber-dovish monetary policy would lead to excesses. We have now come to that point and I am no longer alone in my criticism. There is a growing concern from many corners of the globe that monetary policy, far from...

The Overlords of Finance

October 6, 2016

We keep having to find inventive new ways to describe the ever more extreme antics of our central bankers. In today’s OTB, good friend Danielle DiMartino Booth draws an interesting historical parallel in a valiant attempt to place post-Great Recession central bank activity in a comprehensible context.

She takes us back to the 20th-century era of World Wars and draws upon the thinking of Liaquat Ahamed, whose seminal work The Lords of Finance is said to have been inspired by that unforgettable...