Zero Interest Hurting the U.S. Economy

Despite the slight tick up in the unemployment rate to 9% in April, the economic impact of the Fed’s quantitative easing program, so-called QE2, is largely positive. Since it was announced last August, the stock market gained 30% and the unemployment rate declined by a full percentage point. The Fed’s ultra-low interest rates are not without unintended and unwelcome long-run economic consequences, however.

Just take a look at our very own Bethpage, N.Y.  For decades, residents enjoyed walking to the nearby beautiful garden nursery. In 2007, at the peak of the real estate bubble, the nursery was turned into a multiple unit retail outlet—its developers didn’t seem to mind that scores of nearby retail outlets were vacant, they had the land and they had the financing. Four years later, the new outlet was vacant too!

Read the full article in the op-ed section of Newsday 05/06/11.

How to Prepare Your Portfolio for the Coming Austerity

After delving into the abyss during the financial crisis, Wall Street had everything going its way: An accommodating FED trying to reflate assets; a friendly Congress expanding spending and renewing the Bush tax cuts; roaring emerging markets that do not seem to have enough U.S. products. Corporate profits are back and major indices have been racing towards the old new highs; energy and precious metals have been logging for the moon.


Read the full article here.

Why Research in Motion and Nokia Can't Compete with Apple?

For years, the stocks of Research In Motion (RIMM) and Nokia (NOK) outperformed the stock of Apple (AAPL) by a big margin. Recently, however, the three stocks have reversed fortunes: Apple's stock is currently outperforming those of Research In Motion and Nokia.


Read the full article here.