Archive for the 'Foreign Investors' Category

About the effect of the rest of the world on the U.S. capital market …

Will China become America’s premier landlord?

The rest of the world holds $16.9 trillion in dollar financial assets, and China owns a large, although indeterminate, portion of these assets. With Nancy Pelosi, Chris Dodd, Barney Frank, and Harry Reed having taken over monetary policy from a weak, inexperienced President Obama and with the Democrat-controlled Congress freely enacting highly inflationary spending programs — […]

US acts to support dollar as inflation looms

Despite remarks of Chinese officials and offhand comments of the US Treasury Secretary, the Fed flow of funds accounts for Q4 2008 indicate that the US Monetary Authority acted, in fact, like a world central banker, supporting the dollar as the primary international reserve currency. First, public funds used to support AIG were allowed […]

Buyback bear rages: the worst is yet to come

On September 17, 2007, Capital Flow Watch called the top of the Buyback Bubble, issuing a warning that stock prices might be in for a sharp fall. Unfortunately, that comment turned out to be correct. The outlook considered two simple facts: Stock prices are supported by equity buybacks, which, in turn, now […]

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