Bill Bonner's Diary


The Phony Recovery

Not much action following the new Dow high. Not much follow-through. But no big breakdown, either. As near as we can tell, the Fed's EZ money has driven up stock prices. Investors expect more EZ money. So they think stocks will go up more.



The Greatest Lie the Fed Ever Told

At the start of last week, it was widely reported that US central bankers had gone as far as they were willing to go. There were voices in the Fed, said the news, urging caution. There would be no further monetary stimulus measures, said the commentators.

The Greatest Wealth Transfer in History

Last night, six of us went out to dinner at one of the nicest restaurants in Salta. We ordered two bottles of good Laborum cabernet sauvignon. We had beefsteaks, dessert and coffee. The bill came to 1,058 Argentine pesos (about $200). Was that a lot... or a little?

Fed Fail

Stocks and gold were slapped down yesterday. The Dow lost more than 130 points. Gold eked out a $10-per-ounce gain. What does it prove? Nothing. Central banks are engaged in a breathtaking program of activism. We don't know where it will lead. But judging from the historical record, activism and central banking go no better together than drinking and...

The End of the Road

US stocks are turning down this morning, following news that private-sector job growth in the US slowed the most in seven months. We've already recommended you exit US stocks and buy gold on the dips. Nothing has changed our view... So we'll get back to where we left off yesterday – making camp for the night after a long...