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Are Too Big To Fail Banks Safe?

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Reading Time: 4 minutes Too Big To Fail Definition The definition of the term “too big to fail” refers to a company that poses negative systemic risk to the entire economy in the event of failure. Thus far no firm designated as too big to fail has failed, therefore this is a theory, one…CONTINUE READING

Do Stock Buybacks Deserve The Blame For Everything?

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Reading Time: 6 minutes Introduction: Stock Buybacks Are Not Evil Lately stock buybacks are being maligned to extensive proportions. Critics issue blanket statements blaming  stock buybacks for excessive executive compensation, causing a bubble in equities, and the decline in productivity growth. While these are all appropriate criticisms of buybacks, they miss the mark. If you are…CONTINUE READING

The Next Recession

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Reading Time: 4 minutes The previous financial crisis was a disaster for many, with housing prices and equities falling precipitously. Since then, there’s been a new crop of ‘forecasters’ who have made a living explaining when the next crisis will be. That’s backwards looking analysis which feeds off people being scared and uninformed. Even…CONTINUE READING

Economic Trends Among Countries

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Reading Time: 4 minutes In this article we’ll look at some of the economic trends within countries to get an idea of which countries are the most innovative. We’ll also look at the inequality trends among countries. As a general rule, the best countries implement free market reforms. Free choices let people and businesses…CONTINUE READING

Active Vs Passive Investing

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Reading Time: 4 minutes The investing landscape has changed in the past 10 years as index funds have burst onto the scene taking market share from active management. This trend in fund flows is important because it changes the characteristics of the market. You need to know your fellow investors. Before ETFs became prevalent,…CONTINUE READING

Amazon Is On Welfare

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Reading Time: 4 minutes Corporate welfare is when companies get special grants, subsidies, tax breaks, or other benefits which aren’t given to other businesses. Often big businesses get these breaks because they are more powerful. They have more more power because they create many jobs, and most importantly, they have a lot of money…CONTINUE READING

Why Isn’t The Federal Reserve Audited?

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Reading Time: 5 minutes Senator Rand Paul’s ideas have been gaining traction, probably because he is much more pragmatic than his father, Ron Paul. Rand sees what each side wants in a negotiation and finds a suitable solution that all parties can agree on. His ideas for the framework of healthcare legislation would have…CONTINUE READING

Perils of Index Investing

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Reading Time: 4 minutes In a previous article, we discussed the problems with investing in index funds. One of the most important points made in that article was that indexes ignore firms with negative earnings when calculating price to earnings (P/E) multiples. When you buy an index fund, you buy all the stocks. Ignoring…CONTINUE READING

What Role Does Gold Have in Today’s Markets?

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Reading Time: 3 minutes In modern financial markets, the list of securities you can place bets on is long indeed. In addition to traditional investments such as stocks and mutual funds, newer financial instruments such as derivatives and ETFs (electronically-traded funds) have become popular. There has even been an attempt recently to allow investors…CONTINUE READING

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