Doug Dachille & Gary Kaminsky discuss Fed, Rates, and Inflation

Very interesting video from SquawkBox Wednesday morning — I thought Doug Dachille of First Principles Capital Management did a nice job and Gary Kaminsky Neuberger Berman is always solid.


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This was not Joe Kernan’s finest interview . . . especially later in the interview.

Part II is here:

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  1. Bill commented on Jun 26

    Can someone please explain to me why Joe Kernen is the focal point of that show? This clip highlights his issues as an anchor. He is a relatively smart guy, but appears to be completely misinformed and ultimately comes off as a b.s. artist. His knowledge seems superficial at best and he clearly works with the agenda of bullying bearish commentators and almost always searching for the silver lining. i cant watch the show at this point because of him. In the late 90’s he was entertaining, but he has grown too big for his britches and has become overbearing and just attacks anyone who doesnt fall in line with his wishes. Total egomaniac

    Whats the deal with Besty Quick and Carl – they seem like the true superstars of that show and yet have been marginalized? Carl has been pushed into the background. Betsy gets to say a few things a segment if lucky. CNBC is just a total joke now, more so than ever

  2. bonghiteric commented on Jun 26

    I’ve seen Dachille on before and I generally will watch his comments and I agree with him in to a certain extent in this segment. He’s well prepared and knowledgable on other segments I’ve seen him.

    Kernan loves to think he knows more than any guest. He is boorish and can’t keep his political agenda out of any interview. The biggest reason I watch Bloomberg and flip to cnbc during their commercials.

  3. VennData commented on Jun 26

    Dachille is right that the debt and deficit is the prime driver of the US economic problems.

    When government debt increases, the Fed tools help the market to change their mix of dollar and bond holdings. That’s why inflation, dollar destruction, etc… is always and everywhere a FISCAL problem. When Zimbabwe prints debt, then the banks have to print money, same with Germany in the 1920’s; inflation is a fiscal problem.

    Joe Kernan’s over talking of someone who’s explaining the truth is a dis-service to his viewers. That sort of argumentative technique reveals the weakness of the arguer’s position. He concludes by saying ‘you haven’t made the link’ after he never let the Dachille speak.

    Deal with it Joe K.: the Bush/ GOP Congress debt binge has been a screw up. It’s time to move on.

  4. odograph commented on Jun 26

    Kernan was the one who threw in the “carbon and global warming” clunker? It’s 2008 dude, not 1998.

  5. Riles commented on Jun 26

    Joe’s immediate ourburst over the deficit issue, and his continued interruptions of someone I wanted to hear from were beyond an annoyance. Obviously Joe’s politics bias HIS intelligent analysis of an issue, but why prevent the viewers’ hearing from the guest? Nowhere near the level of Kudlow with his guests, but too much of this on shows we tune to as a FINANCIAL/INVESTING resource.

  6. tyoung commented on Jun 26

    John P Hussman is one heavyweight commentator who would support the idea that the fiscal deficit is very important. This is from his June 16th commentary.
    “Unfortunately, fiscal policy has put the FOMC between a rock and a hard place. If the government insists on creating huge volumes of debt, it must either be held by the public in the form of Treasury securities (putting a demand on funds that would otherwise be available for domestic investment), or else the Fed has to buy the Treasuries and create base money. That doesn’t leave much room for finesse.

    The large and continuing U.S. fiscal deficit forces us to finance our domestic investment with foreign savings inflows, and continues to pressure the U.S. dollar in the process. The Fed might like to tighten to support the dollar, but having sat idle during the housing bubble, higher rates now would simply accelerate the pace of mortgage defaults. The Fed can certainly talk about raising rates, and might even trot out an initial hike, but every time credit trouble threatens the markets, the Fed will predictably shift to frantic attempts to calm the market with easy money. ”

  7. Anarchus commented on Jun 26

    Today, I’m thinking, the jawbone is an ass . . . . . . .

    Bernanke may be the Chairman of the Federal Reserve, but he is not Volker and he’s not even Greenspan.

    Instead, he’s the academically-minded head of the Fed who who said in March 2007 that the subprime crisis was “contained”, and he’s the genius who announced a rescue package for financially-crippled Bear Stearns on March 10th that provided them funding on March 27th.


    When Dr. Bernanke DOES NOT raise rates by 25 bp to shock the commodity markets out of rally-mode and instead tries to “jawbone” down the fast rising inflation expectations in the capital markets, I’m beginning to think that the capital markets will likely call his bluff and try to break his jaw bone instead.

    Stay tuned . . . . . . . . . the price of gold in dollars is probably the best measure of the test, as well as the USD in Euro’s and the price of crude.

  8. Arthur commented on Jun 26

    Found this to be quite interesting. The guests reasoned well and drew upon experience.

    Kernan, however, struck me as (and I use this term advisedly ’cause I generally admire the US) the Ugly American, bellowing at things he didn’t want to hear and couldn’t bear to accept. It was like the hosts were being told they have terminal cancer; they denied, got angry, wanted to bargain a solution. No clear acceptance yet but still kind of fascinating.

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