Unintended Consequences

Nov 11, 2010 | Behavioral Finance, Incentives

There is an interesting study that says states that ban texting while driving actually have rising accident claims.

Why? They theorize that drivers try to evade police by lowering their phones when texting, which increases the risk by taking their eyes even further from the road and for a longer time.

Why do I bring this up? Because the unintended consequences of every action should be taken into consideration.

A good think to remember when we’re talking about economic policies–monetary or fiscal.

CLICK FOR FULL ARTICLE – CRASH INTO ME

 

Mid-Quarter Update

Nov 3, 2010 | Market Commentary, Videos

We’re 1/3 done with the quarter, elections were yesterday, and lots left in the year.

In this week’s video, I give a little update on the quarter and year so far, plus a discussion about why you have to take the comparison of your portfolio to an unmanaged index with a grain of salt.

Listen to my video below to find out more.

 

QE Did Not Work in the UK

Nov 3, 2010 | Banking, Europe, Monetary Theory

This is a quarter you’re going to hear about Quantitative Easing.

I hate it.

It’s my belief the increased money supply will stay on the books of the banking industry to offset any potential commercial real estate downgrades they’ll be making in the future.

From the banks’ point of view, it makes perfect sense. For you and me, not so good.

How did QE work in Japan and the UK? Not well at all.

 

CLICK FOR FULL ARTICLE – QE DID NOT WORK IN THE UK

QE2

Oct 20, 2010 | Interest Rates, Market Commentary, Monetary Theory

Quantitative Easing ( known as QE 2 amongst friends) is coming this quarter. In my opinion, it’s being priced into the markets already.

What is it? A scheme by which the money supply is increased and hopefully starve off deflation and boost the economy.

Sorry, I’m not buying it.

CLICK FOR FULL ARTICLE – QE1 FAILED, WHY WILL QE2 WORK

CLICK FOR FULL ARTICLE – FED’S STRATEGY OF GETTING RETAIL INVESTORS INTO STOCKS VIA QE2 WILL FAIL