Financial Literacy

Total Credit Card Debt Is Increasing

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Reading Time: 5 minutes Studying the health of the consumer is very difficult because there are so many stats which show different results. In fact, sometimes the same study can show support for opposing conclusions. Let’s start by looking at the negatives, one of which is total credit card debt. As you can see…CONTINUE READING

Technological Unemployment: Should We Fear Innovation?

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Reading Time: 6 minutes What Is Automation? Technology is constantly improving and affecting more people throughout the world, however an often misunderstood, and as a result highly debated topic is how technology, and specifically automation, negatively impact current jobs, leading to technological unemployment. Over the past decade the labor market has been undergoing low…CONTINUE READING

On The Precipice Of Collapse?

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Reading Time: 5 minutes When attempting to understand the importance of events and likely probabilities of future outcomes its critical to be open minded. As long as you are not reading boom or gloom content, there are often moments when the same concept gains a new meaning if you slightly alter your perspective. Instead…CONTINUE READING

Natural Interest Rate: Yield Curve Inversion Is Near

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Reading Time: 5 minutes Determining if the current Fed funds rate is too restrictive or expansionary is a critical endeavor because it helps explain what part of the economic cycle we are in. As we have discussed previously, there are many different ways to attempt to time the business cycle in an effort to…CONTINUE READING

Is Gold A Good Investment?

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Reading Time: 6 minutes While some investors are intellectually brave to even ponder whether gold is a good investment, sadly most investors malign it for even being considered a plausible investment option. Gold is probably the most interesting and at the same time misunderstood asset in the world. Some investors believe that because gold doesn’t…CONTINUE READING

Bull vs Bear Market: Historical Gains & Losses

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Reading Time: 7 minutes Bear Market Definition: A bear market is defined as an event where asset prices decline in excess of 20% for at least 60 days. In contrast, if a decline in asset prices in excess of 20% occurs for less than 60 days this is referred to as a “market correction”.…CONTINUE READING

Student Loans Are Not Like Housing Bubble

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Reading Time: 6 minutes It’s widely known that the financial sector has become more centralized because of the mergers between some of the banks and other financial institutions during the financial crisis something we discussed in depth in Are Too Big To Fail Banks Safe?. For example, Bank of America acquired Merrill Lynch and…CONTINUE READING

Are Low Wages Supporting High Corporate Profit Margins?

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Reading Time: 6 minutes The problem with macroeconomic analysis is when economists make broad statements about the economy. The reason this is not practical is because the economy is a complex system and is constantly changing. The job of the Federal Reserve is to make policy decisions for the whole economy which is a…CONTINUE READING

Output Gap: A Recession Timing Indicator

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Reading Time: 5 minutes Output Gap Explained The output gap is the difference between actual and potential economic output and is used by economists to understand the health of the economy. There will never be a metric which tells us how the economy will perform with absolute certainty. Not only is it difficult to…CONTINUE READING

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