9/17/14

Is Printing Money a Free Lunch?

US set for lowest budget deficit since 2008” reads a recent CBS headline.


This year’s U.S. budget deficit is estimated to be $506 billionWhile this is a large amount in absolute terms it is much smaller than deficits in recent years. This relative dearth of red ink has led Paul Krugman to crow, “Bad news for Dr. Evil fans: the days of a ONE TRILLION DOLLAR deficit are over. In fact, the deficit is falling fast.”

8/28/14

The Real Financial Monster: Low Interest Rates

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Financial markets live in terror of the day the Federal Reserve raises interest rates. However, we should fear exactly the opposite: a persistent nightmare of low interest rates. Chronically low interest rates signal trouble, and they inflict financial pain. Ominously, a recent economic poll (interpreted correctly) suggests that interest rates are going to fall, not rise. 

7/14/14

Happy Birthday Dow 5,000 Prediction

© Terry Burnham

On July 11, 2013, on this page, I predicted that the Dow Jones Industrial Average would hit 5,000 before it hit 20,000. Here is some of what I wrote a year ago:
The Fed has been keeping interest rates at rock bottom lows to supposedly stimulate the economy… The idea that the Fed can save the economy is simply ridiculous. … What about fiscal policy? Can we deficit spend our way to prosperity? This is also ridiculous. Our problem is that we have overspent. If you had a problem of drinking 50 cups of coffee a day, would the solution be to drink 80 cups a day for a while? … 
Stocks will decline … I’m not predicting what will happen today, or in the next week or month. I don’t pretend to know the timing. I only think that I see the inevitable.
One year later, we revisit the macroeconomic policies and the impact on jobs and profits, and check in on the Dow Jones Industrial Average. In addition, we develop a scorecard to revisit periodically as the government attempts to end the unusual macroeconomic policy environment.

6/2/14

The 5 Critical Mistakes College Students Make

What are these students doing right?

The 5 Critical Mistakes College Students Make

Two students email a professor asking for help getting a job. The professor says yes to a student with bad grades, and no to the student with straight A's. Why?
There are secret rules to academic life. Students who know the rules win, others lose. These rules are invisible to most students, and there is no college course that explains the hidden paths to success.


3/30/14

Big Banks Will Fail


Click to view CNBC segment

10/9/13

Dow 5000

  click to visit CNBC article

5/8/13

The Stockholm Syndrome and Printing Money

 Click to watch CNBC video