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Posts Tagged ‘America’

Modern Day “Salami Slicing”

In Financial, Fresh on April 1, 2014 at 3:13 PM

My first introduction to “salami slicing” was in Superman 3. Richard Pryor, who played a quirky computer hacker that worked in the processing department of a bank, discovered that there were millions of transactions happening at the bank each day and that all of them required the bank to round amounts to the nearest penny. By accumulating these rounding increments into his own bank account, he became rich. Apparently, Wall Street has a similar scam and is doing this to all of us every day. 60 Minutes has a must-watch piece if you’re interested in how they skim money from your investments.

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Where is My Father’s Money?

In Advice, Criticism, Financial, Fresh, Uncategorized on January 3, 2013 at 1:26 PM

As some of you know, I’ve been working on a book for the last few years. Here is a sneak peak.

Breaking Investment Theory

In Advice, Financial, Fresh on November 6, 2011 at 9:06 PM

The global financial saga continues. Once Greece is cooked, Italy will follow, then maybe Spain and Portugal. Europe’s problems, much like America’s, are partly financial. There is legitimate concern that the banking system itself is overextended. There’s additional worry that these countries have too much debt, which is why the bond markets are punishing them. During times like this, you’ll notice the stock market (or your mutual fund) is losing money. However, your financial advisor is trained to tell you one thing: stay the course. They will continue to say it no matter how bad it gets.

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ETFs: Explained and Exposed

In Advice, Criticism, Financial on July 14, 2011 at 1:13 PM

During the “flash crash” of 2010, the Dow dropped 1,000 points in a matter of hours because of a computer glitch. During this crunch, ETFs were impossible to sell unless you were willing to take a devastatingly low price. Why?

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American Infrastructure

In Advice, Financial, Fresh on May 20, 2011 at 10:14 AM

America’s in a rut. Despite the mixed economic numbers, long term growth is absent. More importantly, many unskilled workers don’t seem to have a place in the modern economy now that production has moved abroad. This piece published on Seeking Alpha highlights how to capitalize on the inevitable solution.

Strictly Monetary VI: Dollar Downward Spiral

In Advice, Criticism, Financial, Strictly Monetary: A Series on April 22, 2011 at 3:42 PM

In January of 2010 I pointed to the decline of the American dollar as being permanent. I spat at the idea that it was simply a slump. When the stock of companies like Apple and Google were at lows, I advised people that while they were good companies, there was no way I was going to hold anything in American dollars. This past week, Standard & Poors rating agency issued American bonds a negative warning, citing that it had serious concerns as to whether or not the American government will get it’s fiscal situation in order, confirming something we’ve known for years. So, what took so long?

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Strictly Monetary V: Run on the bank

In Financial, Strictly Monetary: A Series on February 13, 2011 at 2:05 PM

This story was originally reported by Milton Friedman. While he was renowned for his theoretical accomplishments in economics, I admired him most for his ability to reach the general public through stories. A bank run, inspired by people demanding their money all at once, demonstrates the original purpose of the Federal Reserve and also serves to provide insights into the anatomy of crisis. While most bank run stories end poorly, this is my favourite example of how to successfully avert crisis.

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Strictly Monetary Part IV: Why Being America is Awesome

In Financial, Strictly Monetary: A Series on February 6, 2011 at 10:43 AM

This is a short piece to describe why being the world’s reserve currency is awesome. It is a one-of-a-kind system that has done things that had never been done before. This piece will lead us into the history of how America got here in the first place, as well as the extremely controversial workings of the Federal Reserve.

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Strictly Monetary Part III: The Game of International Reserves

In Financial, Strictly Monetary: A Series on January 30, 2011 at 10:31 AM

Parts one and two covered the essentials about monetary systems and how we control them. But with exponential increases in the speed and amount of international trade, suddenly there is very little separating monetary policy from political games.

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Strictly Monetary Part II: The Mechanics of Money

In Financial, Strictly Monetary: A Series on January 26, 2011 at 11:59 AM

The global system of money is going through some drastic changes. This piece explains the tools our governments have to control the money supply and the price of money. After this, we’ll be ready to talk intelligently about some of the heavier global issues.

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