The Mess That Greenspan Made - Part 20

Monday Morning Links

Oil price risks put inflation back in focus – Reuters
Turmoil in Iraq could engulf global oil market – Telegraph
3 reasons Iraq conflict isn’t driving up gas prices (yet) – SFGate
Iraq military in ‘psychological collapse’ after losses, desertions – Washington Post
‘Private internet’ FireChat app grows in popularity in Iraq – Financial Times
ISIS May Be More Dangerous than Al Qaeda Ever Was – Fiscal Times
Fed Could Face Tougher Inflation Questions In Days Ahead – WSJ
In Yellen We Trust Is Bond Mantra as Inflation Threats Dismissed – Bloomberg
The Slow Transition from Spender to Saver to Investor – WSJ
Americans still don’t have enough savings – USA Today
This Time is Different, Yet with the Same Ending – Hussman Funds
Betting against the FOMC could end badly – Sober Look
Sound or Unsound? – Noland, Prudent Bear

Stocks slip amid Iraq violence, growth data – AP
The Surging Stock Market: Too Late to Buy? – WSJ
Rising oil prices can pull down markets: Fact or myth? – ET
The rich get richer as stock buybacks surge – CNBC
Another Nail in the Market-Timing Coffin – Servo Wealth
Treasury Yields Near 15-Year High Versus Bunds – Bloomberg
Gold consolidates below 2-month high; weaker shares, Iraq support – Reuters
Hong Kong Is The Key In Global Gold Trade, For Now – In Gold We Trust
Deutsche Bank conducts internal probe into trading on gold “fix” – Reuters
Why The Gold Price Rose $50 On Thursday June 19th – GoldSilverWorlds
Gold Bugs’ Hearts Are Beating Faster – Dollar Collapse

Oil prices spark economic growth concerns – CNN/Money
The jobs where you could be making more money – Vox
China, Japan manufacturing grows again, euro zone falters – Reuters
Draghi Says Unlimited Cash Through 2016 Is Rate Signal – Bloomberg
IMF Frets About Hot Money, Wants to Take Over Global Monetary Policy – TP
Germany Warns About the Global Risk of Asset Bubbles – Money News
With inflation rising, is it time for a reality check at the Bank of Canada? – FP
China’s wobbly housing market isn’t the only thing dragging down growth – Quartz
We Need Subprime Mortgages For A Healthy Housing Market – Motley Fool
Why the Fed Is Nothing to Celebrate – Mises
Spiking the Fed’s punch bowl – The Hill
Inflation Hysteria – Fed Watch


Time Magazine on the Disastrous War on Fat

Time Magazine’s current cover story Ending the War on Fat ($) is the latest evidence that much (and, sadly, the most important parts) of what we’ve been taught about nutrition over the last few decades or so has not only been wrong, but quite harmful.

For anyone who’s been following this in recent years (we made the big switch about three years ago), there’s nothing new here, just more people realizing that carbohydrates are what has led to an obesity/diabetes epidemic while doing nothing to prevent heart disease.

Interestingly, while looking for this week’s cover, in which butter is glorified in an attempt to sell more copies (and, inadvertently, make people like Bill Maher look pretty stupid about this topic – sorry, no link), I happened upon another cover story as shown to the right, this one from back in 1984.

Readers were told:

“Cholesterol is proved deadly, and our diet may never be the same … This year began with the announcement by the Federal Government of the results of the broadest and most expensive research project in medical history. Its subject was cholesterol, the vital yet dangerous yellowish substance whose level in the bloodstream is directly affected by the richness of the diet. Anybody who takes the results seriously may never be able to look at an egg or a steak the same way again.”

That’s your federal government, hard at work improving the everyday lives of us ‘Mericans.

The latest issue of the Iacono Research Weekend Update has been posted to the website and is now available for subscribers here. There will be no changes to the buy ratings but three changes to the model portfolio as the latter subject along with last week’s Fed meeting are addressed in the following discussion topics:

The executive summary is as follows:

More violence in Iraq, signs of rising inflation, and dovish words from the Federal Reserve combined to send the price of nearly all risk assets higher, but the natural resource sector benefited more than others. Broad equity markets notched more record highs, the bond market was little changed, and the dollar moved lower as the central bank seemingly gave the go-ahead for traders to bid prices higher for everything.

Energy prices rose for the fifth time in the last six weeks but precious metals saw even bigger gains while related shares for both commodities moved sharply higher. Gold and silver mining stocks appear to have resumed the rapid ascent that started in the beginning of the year and this was a key factor in the model portfolio jumping 2.1 percent, now up 8.3 percent for the year.

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Get Ready for a New Middle East

This Atlantic report shows where Middle East international borders are probably headed as the recent invasion by ISIL (formerly known as ISIS) has most of the world thinking the “democracy and capitalism fairy dust experiment” in Iraq (I forget who characterized it as such recently, but it kind of stuck – also see Was Joe Biden Right?) has finally failed.

You know the rest of the world is a bit behind the curve on the whole Iraq mess when the media can’t decide what to call the group that is redrawing the borders, a point that is taken up in ISIL or ISIS? Why the World Can’t Decide at Quartz. BTW, how ’bout that stock market?

© 2010-2011 The Mess That Greenspan Made