All Posts Tagged With: "housing bubble"

Dr. Bernanke’s Fed Funds Patent Tonic with Opium

If you look at the weekly price chart for either gold or silver for the week ending January 27, 2012, you can make out a distinct “J” shape in prices of both metals. Tuesday the prices were suppressed, and then on Wednesday they spiked upward. You can actually pinpoint on the charts the moment the Federal Reserve announced its intent to keep the Federal Funds Rate at nearly zero percent until late 2014.

Low interest rates are supposed to spur economic growth, or at least that is what the textbook for my International Political Economy course said, so what could possibly be wrong with low interest rates?

Of course, low interest rates provide an incentive to borrow money. However, they also form a powerful incentive …


Obama’s Jobs Plan: Economic Destruction Becomes Policy

Once again, a professional politician who believes that wealth comes from spending borrowed money has abused the patience of our nation and proposed another mechanism for wasting an enormous amount of money on a vaguely defined program which will accomplish nothing of benefit and inflict further damage on our economy – at least what’s left of it.

As it turns out, the President of the United States is rather clueless as to why the economy is in the doldrums, but under the political doctrine of “something must be done, even if that something will make the problem worse,” he now urges the nation to stagger into another stimulus program.

An economy can be roughly divided into three main sectors: The primary economy is one of …


College Is A Bad Investment

To the baby boom generation, a college degree was almost a mystical amulet, and just possessing it meant that your life would be improved in mystical ways. Thus, a college degree was something to be quested for, like a hero from Greek or Norse mythology.

Unfortunately, college is a horrible investment. Actually, I need to amend that; nothing is a horrible investment in-and-of itself. This is true for stocks and bonds, houses, and even college. Overpaying for these things – defined as paying more than is reasonable compared to the returns – makes them bad investments, and if you are attending a four-year college, you are almost certainly overpaying.

The United States has more unemployed college graduates right now than we have ever had before. …


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