“The financial crisis has shown that markets are bubble-prone and that laissez-faire regulation doesn't work. The authorities need to get a grip if we are to avoid a mega-bubble. But we may need an even deeper crisis for that to happen.” That is the conclusion of a fascinating round-table discussion just published by Prospect magazine.

We all know the catch-22 situation facing the Federal Reserve… stagflation . A stagnant economy coupled with rocketing inflation. At the rate oil is increasing, we can expect our daily products to double in prices within the next 2-3 years.

Investors are running for the hills today, but are they running in the right direction? In this very informative webcast, Marc Faber and Frank Holmes discuss global investment opportunities and threats.

Enjoy the discussion.

From fiscal policy to energy policy to foreign policy, the Bush Administration has committed one gaffe after another, and the futures markets have been quick to react, with devastating economic consequences. Read on.....

Renewed fears of inflation and slower growth caused by record energy costs played havoc with global stock markets last week, resulting in the Dow Jones Industrial Average being on track to record its worst June since the Great Depression. As stocks suffered, gold bullion surged and government bond yields dropped due to safe-haven buying.

A ton of doubt ...

Sentiment deteriorated further during the past week as oil prices rebounded, more bad news in the financial sector surfaced, economic woes mounted and inflationary pressures intensified, compounding already-jittery investors’ anxiety.

This post reports on an interview of The Globe and Mail with highly regarded money manager Jeremy Grantham. He discusses the lie of the investment land, providing some stimulating and thought-provoking input. In short, it may not be 1929 all over again, but he sees no quick end to the pain.

After stock markets have held up bravely in the face of the credit crises and mounting economic woes, a combination of renewed concerns about the financial sector, a record-breaking spurt in the oil price, and a rotten unemployment number claimed their toll on Friday, triggering a sharp sell-off in most parts of the world.

The world is officially in the throes of a food crisis. This article hints at some of the medium-term and long-term implications that may arise out of the global food crisis.

Donald Coxe, Global Portfolio Strategist of BMO Financial Group, has established a great “big picture” track record and built a large following over the years. His eloquently phrased investment recommendations are particularly insightful and are repeated in this post in an attempt to make sense of the troubled times encountered by financial markets.

Enjoy the read.

I believe The Fed is right in not lowering the interest rates in the short term. It is a painful measure but the general economy will benefit in the long term. In fact, as an investor, I want to see a government adopting tough measures to cure the economic ills.

The big question investors are grappling with at this stage is whether the rise in prices has simply been a bear market rally, or whether we are back in a primary bull market.

In the last bull market, some financial analysts and economists debunked the existence of traditional business cycles. The basic assumption was that the global economy is spurred by so many positive drivers that a steady, non-inflationary growth path is easily achievable.

Nouriel Roubini, professor at New York University and chairman of RGE Monitor, is renowned for his bearish stance on the US economy and stock markets. The Financial Times has just conducted a three-part video interview with Roubini on a variety of topical issues. This is the subject of this blog post.

In recent months, amid the housing slump and credit crunch, US economic growth came to a standstill and many economists believe the world’s largest economy is heading for a recession.