Mainstream economists have filled the minds of most Americans with economic myths that are constantly reinforced by the media and repeated on the streets. These myths are erroneous at best, sometimes based on half truths. Many of them are just false. We hear and read them every day: “inflation” is caused by rising oil prices; [...]
How Did The Crisis Happen?
We attempt to analyze and explain how and why we find ourselves in the greatest financial crisis since the Great Depression
Global financial markets are awash in hundreds of trillions of dollars worth of derivatives. By some estimates, the total amount exceeds one quadrillion dollars. Derivatives played a central role in the 2008 credit crisis, as they had a brutal multiplying effect on the magnitude of the carnage. As a bad asset was written down, oftentimes [...]
San Bernardino, Calif., has now followed Stockton into bankruptcy. Harrisburg and Scranton, Pa., and Jefferson County, AL, home to Birmingham, are already there to welcome them. Detroit, MI has been taken into receivership by Michigan. A plan under discussion is to level a fourth of the city and reconvert it into the pasture and farmland [...]
The following is an excerpt from Richard Russell’s Dow Theory Letters. “Charlie Munger and I have not learned how to solve difficult business problems. What we have learned is to avoid them.” Warren Buffett A Critical Concept — I want my subscribers to be acutely aware of the very BIG picture. The big picture can [...]