Submitted by CARPE DIEM
Special Carpe Diem Welcome to the Finance Students at the Academy of Economic Studies in Bucharest, Romania, and UM-Flint Professor and Fulbright Scholar Dr. Seyed Mehdian.
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Submitted by CARPE DIEM
The chart above (click to enlarge) shows the growth rates (from a year ago) for the monetary base and M1 money supply since 2005. M1 has been flat with zero growth for more than 2 years, and the growth in the monetary base has been declining and is now approaching 0% […]

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Submitted by The Capital Spectator
The investment universe is filled with surprises, and perhaps the biggest shocker of all is the idea that the value strategies of Ben Graham and his disciples are in general agreement with modern portfolio theory (MPT).
Granted, it sounds absurd. MPT, after all, is the suite of financial theories that spawned index […]

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Submitted by Econbrowser
Via West Virginia Rebel, the Telegraph reports:

Sir Paul McCartney is said to be “horrified” that his new eco-friendly car was flown 7,000 miles from Japan.
The Lexus LS600H, which costs £ 84,000, was a gift from Lexus to the 65-year-old former Beatle, who helped promote the hybrid vehicle. But instead of arriving by boat […]

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Submitted by Econbrowser
Fed Chair Ben Bernanke on Tuesday offered his perspective on the appropriate response of the Fed to the ongoing turmoil in financial markets. I still think he’s overlooking a key element of what’s been happening.

Bernanke observed:
Meeting creditors’ demands for payment requires holding liquidity– cash, essentially, or close equivalents. But neither individual institutions, nor […]

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Submitted by CARPE DIEM

WASHINGTON – U.S. consumer prices were under wraps last month, a government report showed, especially when food and energy prices were stripped out, further evidence that the economic slowdown is easing some of the inflationary effect of recent sharp gains in food and energy prices.
Consumer prices rose 3.9% on a year-over-year basis, […]

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Submitted by CARPE DIEM
WSJ–We can’t wait to hear how Members of Congress explain their vote this week for the new $300 billion farm bill. At a time when Americans are squeezed at the grocery store, they will now see more of their taxes flow to the very farmers profiting from these high food prices.
Nearly every […]

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Submitted by CARPE DIEM
With all the commotion in the media and in politics about the high price of gasoline, is there really some terribly complex explanation?
Is there anything complex about the fact that with two countries– India and China– having rapid economic growth, and with combined populations 8 times that of the United States, they […]

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Submitted by CARPE DIEM
Money Magazine recently put out a city-by-city home price forecast, using data from Fiserv Lending Solutions, First American CoreLogic, city and county assessors, and realtors. The magazine determined that U.S. home prices will fall an average of 9.7%, see list above (click to enlarge).

Notice Detroit has the highest expected appreciation of 8.6% […]

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Submitted by CARPE DIEM
NEW DELHI: Instead of blaming India and other developing nations for the rise in food prices, Americans should rethink their energy policy and go on a diet.
Americans eat an average of 3,770 calories per capita a day, the highest amount in the world, according to data from the UN Food and Agricultural […]

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Submitted by A Dash of Insight
Stocks can and do stray from valuations suggested by fundamental analysis.  Despite this, it never hurts to understand the economic background.  Understanding the economy helps to gauge earnings forecasts.  This is especially important for stocks with a cyclical character.
Here are some statements about economic data and the market.  For each […]

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