As history demonstrates, conformity to the irrational can and often does persist beyond conceivable limits, yet incoherence of behavior is not sustainable indefinitely.
My previous article, The Death of the Virtuous Cycle, provided readers with a clear understanding of why the United States and many other developed economies have seen productivity, wages, and economic growth stagnate. Due to the significance of its message and my desire to effectively reach as many people as possible, I take a new approach and present the concepts using an animated short video.
Modern central bankers try to convince the world that deflation is evil. They preach that they must intervene to stoke inflation at all cost for the good of society. The truth is that deflation is a beneficial byproduct of innovation and productivity gains.
Danielle DiMartino Booth, a former Dallas Federal Reserve official, released a new book this week entitled Fed Up. The book, a first-person account of the inner-workings of the Fed, provides readers with unique insight into the operations, leadership and mentality of the world’s most powerful financial institution.
We expose the crafty game that Wall Street and corporate investor relations departments play to put a positive spin on earnings releases and give the impression that stock prices are cheap based on forward-looking earnings expectations.
Currently, with equity markets sustaining near all-time highs, there is a common perception that the equity market is “running.” As a result, many investors harbor concern of getting left behind. The reality is that equity markets are not surging, or “running,” and have actually been consolidating for almost two years.