Tag Archives: investors

THE WORLD IN A (CRACKED) NUTSHELL: THINGS HAPPEN

Investors and people in the business world need to be aware of world events and the impact they have on their business outcomes. Recent events of which we should all be aware are:

 
• The Russian-Turkish Rivalry
• The Apparent Steadying of the European Economy
• The Death of Supreme Court Justice Antonin Scalia
• Prison Riot in Mexico City
• The Northwards Spread of the Vika Virus
• Trade Dispute between Russia and Ukraine
• Rapid Changes in the Syrian Civil War
• Economic, Security and Political Developments in Central Africa
• Growing Civilian Casualties in Afghanistan
• The Weakening of the Indian Rupee
• Growing Stresses between North and South Korea
• Poor Performance of Japan’s Economy
• The Persistent Decline of Oil and Gas Prices
• American Political Chaos

 

For More: http://financialpolicycouncil.org/blog/the-world-in-a-cracked-nutshell-things-happen

About Those Mad Egomaniacs We Call Economists

“Anyone who believes in indefinite growth in anything physical, on a physically finite planet, is either mad or an economist.”
― Kenneth E. Boulding
Yes it is always easy to poke fun at economic forecasts, especially because they usually turn out to be wrong, often by a large margin. However, before laughing them off, think about what is being asked of those forecasts and the economists making them by considering the below analogy.

 

I presume that most of you reading this own a car and have a license to drive it. The license certifies you to be minimally competent drivers, sort of the way a Ph.D. certifies an economist to have a minimal command of economics. Nonetheless, it is very easy to prove that you are all incompetent fools who know nothing about how a car works or how to drive it and thus to prove that drivers’ licenses are a big joke

 

For More: About Those Mad Egomaniacs We Call Economists

Bullish on Stocks?

To be perfectly candid, I am not saying stocks are “a bubble” today. I am not saying prices are “ridiculous.” I am not saying the things that some of the louder doom-and-gloomers are howling about the coming devastation.

 
But I certainly think that what’s happening today is, in large part, the result of unsustainable easy-money policies from the Fed, and that it is too good to last.

 
One of the most important things you can do as an investor is to try to seek out smart arguments that lay out the opposite side of the views that you hold. In other words, if you’re bullish, you should seek out smart bears, and vice versa.

 
And if you’re so sure that stocks are just going to keep going up and that anyone who voices caution is a moron — then at least think about this

 
Someday, financial markets will again decline. Someday, rising stock and bond markets will no longer be government policy – maybe not today or tomorrow, but someday. Someday, QE will end and money won’t be free. Someday, corporate failure will be permitted.

 

For More: Bullish on Stocks?

Thank You,

About Those Mad Egomaniacs We Call Economists

“Anyone who believes in indefinite growth in anything physical, on a physically finite planet, is either mad or an economist.”
― Kenneth E. Boulding

 
Yes it is always easy to poke fun at economic forecasts, especially because they usually turn out to be wrong, often by a large margin. However, before laughing them off, think about what is being asked of those forecasts and the economists making them by considering the below analogy.

 
I presume that most of you reading this own a car and have a license to drive it. The license certifies you to be minimally competent drivers, sort of the way a Ph.D. certifies an economist to have a minimal command of economics. Nonetheless, it is very easy to prove that you are all incompetent fools who know nothing about how a car works or how to drive it and thus to prove that drivers’ licenses are a big joke.

 

For More: About Those Mad Egomaniacs We Call Economists

Thank You,

Stop Procrastinating and Find a Reason to be Rich – Ziad K Abdelnour

I believe each one of us has a financial genius in him/her that is asleep and just waiting to be awakened. It lies asleep because our culture has educated us into believing the wrong things about money. We’re taught to be employees and work for money rather than to be entrepreneurs and investors and have money work for us. We’re taught to not worry about our financial future because our company or the government will do that for us.

 

I also believe the best revenge against liberals and corporate bosses idiots is “obscene wealth”.

 

The message about money we’re taught from a young age is work hard, earn money, spend it, and when we run short, borrow some more. Unfortunately, 90 percent of the Western world subscribes to the above dogma, simply because it’s easier to find a job and work for money than to make your own way and build your own wealth.

But to those who want to buck the trend, I have 10 ways to awaken your financial genius which I’ll share with you over the next couple months.

 

Continue Reading: Ziad K Abdelnour

Don’t be fooled by what policy makers tell you !!! Read the facts

As part of Blackhawk’s close group of family and friends, we thought we’d share with you some of our most salient views as to the state of the world economy today and what to watch for in case you’re also in the “Wealth Creation” business.

We hope these thoughts will help you better position yourselves in the months and years ahead.

Even if you disagree with our points on the trajectory of where the world is heading, it cannot hurt to understand and prepare for the worst case scenario while still hoping for the best.

So here they are…..

About the markets at large:

Contrary to what the talking heads and pontificating gurus are saying, markets are not out of control, central banks are out of control printing money…and we believe they will never tighten monetary policy again, but merely print, print, and print more as they love to see asset prices go up, and as their policy reflects their desperation to perpetuate the process. As far as we are concerned, we know the Federal Reserve will keep interest rates at 0, precisely 0…in real terms.

About the Federal Reserve:

The lifetime achievement of Greenspan and Bernanke is really that they created a bubble in everything, everywhere. In fact, you have to ask what they were smoking during the housing bubble, as prices were increasing by 18% annually when interest rates started to steadily rise in 2004.

It seems that the tremendous economic Sophism of the day is that a nation can print its way into prosperity. By the same token, if debt and money printing equaled prosperity then Zimbabwe would be the richest country in the world. Go figure if Mugabe is not the economic mentor of Ben Bernanke.

Read More: what policy makers tell you

Thank you

Ziad K Abdelnour

Crime Does Pay – The Danger of Too Big To Fail, Too Big To Jail

Americans who play by the rules just got coal in their stockings, courtesy of the United States Government.

The most damaging and dispiriting government action this month is not its treatment of the Fiscal Cliff, but its enforcement decision showing that the rule of law is deliberately uneven. That is the message conveyed by the Department of Justice with its announcement earlier this month that neither HSBC nor any executives at the international bank would be criminally prosecuted for activities involving the money laundering of funds for terrorists and drug cartels (among other bad actors) for which the company itself has agreed to an unprecedented $1.92 billion fine, out of concern that such criminal charges could “destabilize the global financial system.”(1)

The message of a two-tiered justice system is actually amplified by the slap-on-the-wrist criminal plea on December 19th by a subsidiary of the equally too-big-to-fail UBS to one felony count of wire fraud in an emerging interest-rate manipulation scandal, providing for about $1.5 billion in fines and accompanied by criminal indictments of two hapless traders whom the bank decided to throw under the bus in a show sacrifice.(2) One need not be a cynic to view the institutional criminal plea, and the financial settlement which amounts to little more than a rounding error, a cost of doing business, as a transparent attempt to uphold the image — if not the rule — of equality under the law, precisely when they are being broken with impunity and the unofficial imprimatur of the government.

Lands where justice can be bought, where the application of the law depends upon whom it is to be applied, are typically found in Third World countries ruled by despots and the law of the jungle, where might makes right. In such countries, any purported rule of law is best referred to as crony justice. (Note: One cannot define it as “crony justice,” since the definition of justice involves equal application of uniform rules, hence, a two-tiered system involving arbitrary applications or “special treatment” ceases to be justice and that term cannot properly be modified by the word “crony,” or any other adjective, for that matter.)

Continuous Reading: Crime Does Pay