REMINDER: All investment, economics, and finance related material now appears at the new IaconoResearch.com. For the time being at least, this has become a personal blog covering a variety of mostly unrelated topics.

Bernanke Sticks with Stocks

Fortune  reports that Fed Chief Ben Bernanke’s investment portfolio has benefited from the monetary policy he crafted in recent years – to the tune of about a half million dollars.

Bernanke, the Federal Reserve chairman, and his family owned financial assets valued at between $1.2 million and $2.5 million at the end of 2009, according to financial disclosures released by the Fed Friday. That’s up from a range of $850,000 to $1.9 million at Dec. 31, 2008.

The rise brings Bernanke’s holdings back in line with their 2007 levels, tracking the fall and rise of the stock market. The S&P 500 index rose 23% last year after plunging nearly 40% the year before.

Bernanke’s biggest gains were in two retirement accounts he holds thanks to the years he spent as a professor at Princeton, a Teachers Insurance and Annuity Association guaranteed annuity and a College Retirement Equity Fund variable annuity that’s invested in large-cap stocks.

The value of both accounts rose last year to a range of $500,000 to $1 million from half those sums the year before.

He probably hasn’t looked at any of his financial statements in years…

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Former Fed Chairman Alan Greenspan was on Meet the Press yesterday and he shared a few sobering thoughts about the U.S. economic recovery and what might lie ahead for the two markets that have been relative nonparticipants in that recovery – the faltering housing market and a labor market that seems stuck in reverse.

Some highlights from a man who now speaks with lucidity that lied lay dormant for 18 years while at the helm of the nation’s central bank, during which time, a growing number of analysts think he drove the world’s only superpower into a rather large ditch…

(more…)

Monday Morning Links

MUST READS
US economic stress heads back up – AP
Nomura: Fed Will Ease Monetary Policy on Aug. 10 – CNBC
What would Rep. Paul Ryan do for the economy? – Washington Post
Greenspan Says Decline in U.S. Home Prices Might Bring Return of Recession – Bloomberg
After GDP Report, Barclays Takes The Hacksaw To US Growth Estimates – Business Insider
John Paulson Will Be Wrong This Time – The Burning Platform
Five myths about the Bush tax cuts – Washington Post
Negative Equity Breakdown – Calculated Risk

MARKETS/INVESTING
Oil Climbs on Outlook for Chinese Growth – Bloomberg
Gold slips below $1,180/oz as haven buying retreats – Reuters
Dow 14,000 in 2011? Battered bulls feel vindicated – MarketWatch
Is gold dealer using fear to steer buyers into more expensive purchases? – LA Times
Valuing the S&P 500 Using Forward Operating Earnings – Hussman Funds
Bulls brace for earnings hangover – CNN/Money
Big Investors Fear Deflation – WSJ

ECONOMY/WORLD/HOUSING/BANKING
Defining Prosperity Down – Krugman, NY Times
Have jobs become a leading indicator? – Reuters
For Good Economic Forecasts, Try Flipping a Coin – Baum, Bloomberg
Manufacturing in China Grows at Slowest Pace in 17 Months – Bloomberg
State-Owned Groups Fuel China’s Real Estate Boom – NY Times
Homes keep falling into foreclosures as programs fail – McClatchy
Housing figures don’t tell full story – redding.com
Options for monetary stimulus – EconBrowser
Quantitative Easing Two – Noland, Prudent Bear
Bernanke bounces back – Fortune

 

On the Soft Jobs Market…

It seems that everybody is taking shots at economists these days, though, it only seems fair given how poorly their forecasts have matched up with reality in recent years.

From the Tom Toles archive and blog at the Washington Post.

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