Overinvestment, overindulgence, and fiscal binging—call it what you will, but it always seems to lead to a head-pounding day of reckoning. The “hangover theory” is a business-cycle philosophy that famed economist Paul Krugman summarized back in 1998: “In the beginning, an investment boom gets out of hand. Maybe excessive money creation or reckless bank lending…
Spiking the Punch Bowl: The Economic Hangover TheoryDetails“We may well be at the most dangerous financial moment since the 2009 Financial Crisis with current developments between the U.S. and China.” –Former Treasury Secretary Larry Summers China’s move to devalue its currency sent markets reeling and gold soaring on Monday. The People’s Bank of China said the devaluation was “due to the effects…
China Strikes Back: Stocks, Soybeans, and CurrencyDetailsUpbeat earnings, rosy job reports, rate-cut chatter, a red-hot labor market, and robust consumer spending—it certainly has been high times on Wall Street. One is reminded of the days of excess, the “greed is good,” white-collar culture of billion-dollar deals, spending benders, and banks behaving badly. The current appetite in stocks is nothing short of…
An Economic Crossroad: Where Exuberance Meets RecklessnessDetailsGold has been making some big headlines lately, and while experts can’t quite figure out if it’s a rally or a realignment—they like what they see. The yellow metal is up more than 11% in the last 6 months and more than 16% in the last year. But that’s nothing extraordinary for the precious metal. A glance back at the end of the 20th century—which…
The Gold Recommendations Just Keep ComingDetailsWe’re all familiar with the saying “If anything can go wrong, it will.” Known as Murphy’s Law, the dictum was born at Edwards Air Force Base in the late 1940s during crash testing to determine human tolerance for high-speed rocket deceleration. Capt. Edward A. Murphy, an engineer, made the comment when faulty wiring was discovered…
If Everything Is so Great then Why Is Everyone so Worried?DetailsThanks to an array of warning signs, the alarm bells regarding a global recession in 2020 are getting louder. In June 2019, David Malpass, president of the World Bank, cited several ingredients of a potential global recession: “a tumble in business confidence, a deepening slowdown in global trade, and sluggish investment in emerging and developing…
Could We Be Hit with a Global Recession in 2020?DetailsDon’t look now, but the gold bulls are loose—and so are the silver, platinum, and palladium bulls. It’s a precious metals stampede! Gold soared to a six-year high early in the week. Gold has risen 10% so far in 2019 and more than 8% in the last 30 days alone. Silver has risen 5% in the last month, and platinum is up 1%, while palladium has surged more than 15% since mid May. Individuals poured into…
The Case for Precious MetalsDetailsDespite our historic economic expansion, U.S. national debt has hit a record $22 trillion. Former Fed Chair Alan Greenspan has called it an “extremely imbalanced situation.” Imbalanced indeed. Soaring debt and exploding deficits are occurring while unemployment is at record lows, wages are rising, and the strong economy is showing no signs of abating. Imbalanced…
U.S. Debt: Set to Shatter Records and Why It MattersDetails“The self-same moment I could pray; And from my neck so free The Albatross fell off, and sank Like lead into the sea.” Samuel Taylor Coleridge, “The Rime of the Ancient Mariner” When Robert F. Smith told the graduating class of Morehouse College that he would “eliminate their student loans,” a metaphorical albatross slipped from…
Student Loan Debt: A Crisis of Conscience and Economic StabilityDetailsAs its name implies, generational wealth is meant to be passed from one generation to the next—and, hopefully, many more generations. Sadly, however, that often isn’t the case. Generational Wealth is Evaporating It’s estimated that 70 percent of well-off families will lose their wealth by the second generation and 90 percent will lose it by…
Get the Secret to Generational Wealth in Our Free eBookDetailsAccording to America’s most prominent banks, the odds of a recession are increasing. Both Morgan Stanley and JPMorgan Chase have issued warnings about rising trade tensions and slumping global growth—cautioning investors that a U.S. recession could start as soon as in nine months. And they’re not the only ones sounding the alert. In a report…
When Will We Ever Learn? Mistakes We Make Each RecessionDetailsBack in July 2004, while delivering the keynote address at the Democratic National Convention, state senator and future President Barack Obama famously declared, “There is not a liberal America and a conservative America—there is the United States of America.” He went on to decry the seemingly untraversable divide between red states and blue states. Flag…
Will Political Polarization Destroy the Economy?DetailsYou have been signed up for price alerts for this product.
