Many are saying it: “The Fed will cause the next crash!” But what do they mean, and how plausible is it? The Fed is America’s central bank, and by their own definition, their role is to provide the nation with a “safer, more flexible, and more stable monetary and financial system.” Established back in 1913…
The Fed’s High-Wire ActDetailsNothing comes into existence without a force to create it. Our financial world and its many ups and downs is no exception to this rule. Sure, current U.S. economic expansion is on a roll. “Goldman Sachs says there’s a 90 percent chance this expansion will break the prior record set during the 1990s tech boom…
Crisis Ahead? These Mistakes Could Trigger the Next Financial CrisisDetailsIt has been 10 years since the employees of Lehman Brothers stepped out onto Sixth Avenue carrying cardboard boxes and became the enduring symbol of America’s largest bankruptcy. What followed, as they say, is history. Markets collapsed, trillions in wealth evaporated, and big, splashy investment firms fell like dominoes. A decade later, former British Prime…
Another Economic Crisis? Here’s Why We’re Not ReadyDetails“There was the greatest bubble I’ve ever seen in my life…. The entire American public eventually was caught up in a belief that housing prices could not fall dramatically.” Warren Buffett, testifying before the Financial Crisis Inquiry Commission, 2010 Ten years ago, we were deep in the weeds of the Great Recession when American homeowners saw…
Housing Bubble 2 and the Fog of EuphoriaDetailsAccording to the Baker Library Historical Collection at Harvard Business School, the three Lehman brothers, Henry, Emanuel, and Mayer, emigrated from Germany in the 1840s and opened up a dry goods store in Montgomery, Alabama. During this time, cotton was a vital and high valuation crop and the brothers quickly began accepting raw cotton in…
The Match and the Powder Keg: The Fall of Lehman Brothers 10 Years LaterDetailsEvery year in July, the festival of San Fermín is held in Pamplona, Spain. San Fermin is the co-patron saint of Navarre who was martyred at the age of 31 and apparently dragged through the streets by a bull. Despite the fact that it was likely Saint Saturninus who actually met his fate in this…
There’s a Reason We Run from BullsDetailsIt’s somewhat fitting that the future of global monetary policy and the path of U.S. interest rates will be discussed in a place renowned for the Million Dollar Cowboy Bar complete with saddle stools, Wyoming Whiskey, and thousands of Morgan Silver Dollars embedded into the bar top. The Jackson Hole Economic Symposium is a yearly…
An Aging Bull and a Surging Dollar: High Stakes at Jackson HoleDetailsThe only certain things in life are death, taxes, and, one could argue, another financial downturn. Recessions are inevitable. Some economists believe they’re a natural outgrowth of business cycles. Others maintain that booms and busts reflect the inherent cadence of capitalism and a market economy. Still others assert that downturns represent an outgrowth of excess…
When—Not If—is the Next Economic Crisis?DetailsWhat if I told you that Goldilocks was not a fair-haired child but rather a horrid old woman apparently up to no good? What if I told you that the three bears were not as high-minded as they’re often portrayed but rather wild, ravenous, and a bit vindictive? In the Goldilocks tale first published by…
A Goldilocks Economy and the Real Story of the Three BearsDetailsGet ready for the toxic TV commercials, mounds of election mail, and—depending on where you live—door-to-door vote trolling. The midterm elections are now mere months away, and while there’s a lot on the line for both political parties, there is even more at stake for U.S. consumers, particularly those watching their nest eggs. The midterm…
Under 100 Days Out—What the Midterms Could Mean for the EconomyDetailsBubbles, meltdown fears, and irrational exuberance. Is this a toy store on Black Friday? Nope. This is the American reality. It’s time to talk about the economy, stock market, future of gold prices, and so much more. Even if you made it through 2017 and the first part of 2018 financially unscathed, there’s little chance…
The 2018 Gold Global Market Forecast You Can't Afford to IgnoreDetailsInflation is an important economic indicator. It tells you how fast prices are changing in the economy, and it impacts everything from the interest rate on your saving account to your grocery bill. At 2.1 percent, the current inflation rate in the U.S. is giving some market-watchers the jitters. Should you be concerned, too? Get the…
How An Inflation Increase Can Hurt Your Everyday LifeDetails
