Commercial Real Estate Finance

Posts Tagged ‘money supply’

As I sit here and watch the S&P 500 trade through 1040, I can’t help but wonder, “Are we Japan?”

That’s right, we’re back to the “Inflation/Deflation” debate. Are we going to print endless sums of money and end up like Zimbabwe? Or, are we going to be too conservative with the USD and end up like Japan? Or, are we going to spend like maniacs and end up like Greece?

Assuming we have an answer, what does it have to do with commercial real estate? Read the rest of this entry »

Part platitude, part mindless blather, I’m sorry to break out the following trading-floor ‘truism’: “Correlations hold until they don’t.” It’s a sloppy, shorthand way to reminding yourself about the dangers of being complacent. Much of this on-going crisis is the result of complacency developed over years of seemingly inexorable asset appreciation. Market players, regulators, legislators and ratings agencies all were frogs in a pot of water, slowly coming to a boil.

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In a recent Real Clear Markets article (see here), the author trashes Ben Bernanke.  The article is supposedly about how Bernanke’s term should not be renewed because he employs a hybrid approach (Philips Curve & Monetarist).  Why he thinks Bernanke should be doctrinaire about any given theory, I’ll never know.  He also says Bernanke doesn’t understand how the markets actually work.  It all ends up being a bunch of nonsense to justify a return to the gold standard.

In a classic example of academic knowledge vs. practical experience, the author does not understand how the markets actually work.

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