Writing About the Stock Market & Life Since 2003

Civil War in China (Part III)

Jun 10, 2011

Adam Smith, the famous economist who wrote the “Wealth of Nations” wrote of a “system of natural liberty” where individual effort was the producer of social good.

What he was suggesting is that if everyone if free to pursue their own interests the society will benefit as a whole. The problem in China is that everyone is not able to pursue their own self-interest: they’re only able to pursue what the State approves.  And the only way a population will pursue the self-interest of the State is if its directed by the State.

Civil War in China (Part II)

Jun 03, 2011

Let me begin today by thanking every one of you who commented on last weeks article on China. Whether you agreed with the article or not, I do appreciate you taking the time out of your busy day to share your comments. Having been raised in a family that furiously debated subjects like politics and economics every night at the dinner table, I’ve always enjoyed a strong and thoughtful debate. I was taught from an early age that if you dish it out, you have to be able to take it.

Unfortunately, however, two readers attacked my integrity and I thought it was important to address them before I continue with today’s article:

Civil War in China (Part I)

May 27, 2011

For the past decade China has been the wonder of the world. People have marveled at how a country with a closed political system could successfully practice free market capitalism. How could an economy planned by government bureaucrats experience such rapid growth?

The “miracle” of China’s economic might captivated the world.  By 2005, predicting when they would overtake America as the worlds largest economy became a daily parlor game.  Curiously though, every prediction I’ve ever read just debated when China would become the world’s largest economy, not if it would happen. Seemingly every analyst on earth thought it was a forgone conclusion.

Big Bet: The Bull Market is Back! (almost)

Oct 04, 2010

YOU WOULD NEVER KNOW OUR ECONOMY WAS STRUGGLING BY WALKING INTO AN APPLE STORE (SYM: AAPL).

The place was an absolute madhouse when I walked in there Thursday afternoon. So I waited five minutes for the sales person to finish speaking with another customer.

I told him quickly that I wanted to buy a desktop and I knew exactly which model I wanted.

To which he replied, “Let me get your name. It’ll be about a 15 minute wait.”

I reminded him that I didn’t need anyone to help me. I knew exactly what computer I wanted to buy and all he needed to do was sell it to me.

How Raising Taxes (GASP!) Could Actually Help the Economy

Aug 30, 2010

GEORGE BUSH WAS 100% RIGHT TO LOWER TAXES BACK IN 2003. At the time, almost every economist around was predicting surpluses “as far as the eye can see.”  Even the objective Congressional Budget Office (C.B.O.) predicted surpluses for the next decade. Why wouldn’t the government give our own money back to us? Especially when the … Continue reading “How Raising Taxes (GASP!) Could Actually Help the Economy”

Where Should You Put Your Money?

Aug 23, 2010

IT’S OFFICIAL: SMALL INVESTORS ARE LEAVING THE PARTY. According to the Investment Company Institute, a mutual fund industry trade group, through the first seven months of the year investors have withdrawn a “staggering” $33.12 billion from domestic stock mutual funds. $33.12 billion is a big number, no doubt. That means small investors are selling stocks … Continue reading “Where Should You Put Your Money?”

Shiny Happy Fat Homeless People

Jul 12, 2010

I’LL NEVER FORGET WHERE I WAS THE FIRST TIME I SPOTTED THIS PREVIOUSLY BELIEVED TO BE RARE SPECIES OF HOMO ERECTUS. The date was April 1st. April Fools Day to be exact. My favorite holiday after Thanksgiving. I remember it clearly because it had been the perfect day. A day I had dreamed about for … Continue reading “Shiny Happy Fat Homeless People”

How to Rob an Individual Investor

Jun 28, 2010

THE RICH HAVE BEEN DOING IT TO THE POOR SINCE THE BEGINNING OF TIME. Fortunately for us, it’s a heck of a lot more blatant (and therefore easier to spot) on Wall Street than it is in many places. Some call it a “hustle”.  Others call it a “con job”.  Whatever your pet name for … Continue reading “How to Rob an Individual Investor”

How OUR Debt Crisis Will Impact YOUR Wallet

Feb 17, 2010

IT HAS BEEN SAID THAT NO DEMOCRACY CAN SUCCEED OVER THE LONG-TERM. Why? Because people have the power to vote themselves benefits. Ironically, the first democracy to learn this lesson over 2,000 years ago was Athens, Greece. They hold the distinction of being the first country in recorded history to introduce a democracy. Unfortunately, however, … Continue reading “How OUR Debt Crisis Will Impact YOUR Wallet”

4 Easy Steps (and 3 Stocks) to Protect Your Portfolio Now

Feb 04, 2010

I DON’T KNOW ABOUT YOU BUT I’VE BEEN FEELIN KINDA “OUT OF TOUCH” THESE DAYS. Uncool. Not hip. Square. Crusty. Old Fashioned. Maybe it’s because I’m still the only person in my group of friends who doesn’t believe that it’s “just more convenient” to read my newspapers online each day. I don’t know about you … Continue reading “4 Easy Steps (and 3 Stocks) to Protect Your Portfolio Now”