Central banks have set us for an epic fail. The use of low interest rates and printing money to buy financial assets has taken us to a point from which there is only one outcome.
Indebted households demand more income to maintain the living standard they believe they’re entitled to. Sorry. That’s not how it works. Lower your sights. Borrow less.
The biggest wave of all in recent years has been in the technology sector.Valuations soared on the collective (and mistaken) belief that ‘trees would grow, not only to, but beyond the sky’.
The ‘tied sales force’ business model is a breeding ground for conflicts of interest. Does the planner work for the client or for the institution?
Round Three of the (appropriately named) ‘Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry’ kicks off again on Monday. Next week, the Commission’s forensic analysis will be applied to the subject of ‘Loans to Small and Medium Enterprises’. That should be interesting.
A 23-year-old man posted this depressing message on social news and discussion site Reddit. What could possibly have driven him to this level of despair? The young investor, was infatuated with the XIV…so much so, his post had ‘XIV is my girlfriend’. The overnight collapse in the XIV — due to the Dow’s flash crash on 5 February 2018 — saw the young man’s portfolio shrink from US$4 million to US$200k.
While the official retirement age might be 67, we should mirror-reverse those numbers and expect the unofficial number to be 76.
Without wage increases, the only way to grow the economic pie is with more debt. It’s possible to stretch debt’s ‘waistline’...loosen the belt a notch.
I accept my logic is probably flawed. For everyone’s sake, I hope that is true…because, if my logic is correct, a Greater Depression is in our destiny.
The slightest withdrawal of the economic stimulant plunges an economy into depressive conditions. A very serious problem.