Why Financial Literacy Is So Elusive
Nice article from Barry Ritholtz about the importance of a basic financial education, why we're so bad at providing it and what can be done to improve the situation.
Tax Reform Improves State Budgets
Fiscally liberal politicians are furiously trying to pound out the dents in their reputations. Their unified complaint in the post-Trump tax reform world has been that budgets in traditionally Democratic states (i.e. blue states) would be sunk. Data shows just the opposite. Earlier this month California Governor Gavin Newsom introduced a revised $213 billion budget [...]
About That Monday Selloff
Monday marked the 24th time since the March 2009 low that the S&P 500 corrected by 5% or more. Each time many people proverbially lost their collective minds. The lack of perspective is amazing. Since the 2009 low of 666 on the S&P we’ve experienced a 400%+ recovery. A 5% pullback is enough to [...]
Recession, Jobs and Investment Diversification
Recession. Few of us can define/explain it yet so many of us fear it like the mythical bogeyman. (Note: A recession is not an evil hobgoblin with special powers who will carry off our children.) Just what is a recession? Economists define it as two consecutive quarters of negative economic growth. In plain language it’s [...]
Blue States Win Tax Cuts
Live in a high-tax blue state? Annoyed by the SALT deduction cap of $10,000? Quit whining. You were one of the biggest winners of the Trump tax cuts. An early analysis of data shows taxpayers in high-tax states (e.g. California, New York) were some of the biggest beneficiaries. The majority of taxpayers received a tax [...]
Who Funds Budget Deficits?
When Uncle Sam’s income (i.e. tax revenue) is less than his spending he runs a budget deficit. The Treasury Department sells Bills, Notes and Bonds (i.e. “Treasuries”) to cover the shortfall. Who are the buyers? Who enables the federal credit card? Historically the gap was filled from overseas. Individuals would buy Treasuries due to [...]
The Year In Charts
Excellent work by the folks at Pension Partners. Everything you wanted to know – and then some! Spend some time with the data. Quite eye opening.
Everything Stopped and Then It Didn’t
A bit more than ten years ago Lehman Brothers which at the time was the 4th largest investment bank in the U.S. filed for bankruptcy protection. The event has become the symbolic start of what’s been called the Global Financial Crisis (“GFC”). Today we continue to see its effects on both the global economy and [...]
U.S. Share of World Market Cap
Given how touchy people seem to be nowadays we’ll provide some prefacing: The following data is objective and not intended to support any agenda. It isn’t pro/con Trump. It isn’t pro/con tariffs. It isn’t pro/con Wall St. Put down the pitchforks and torches. As Neil Young wrote, “Throw Your Hatred Down.” Whew! OK – with that out [...]
Inverted Yield Curve Suggests 2020 Recession
Lately there’s been a lot of noise about an inverted yield curve. What’s that mean and why is it important? MEANING: Typically ST interest rates are lower than LT interest rates. The “yield curve” – a graphical plot of interest rates – would be upward sloping. An inverted yield curve is the inverse. ST interest [...]