Posted by: quiscus | November 19, 2012

November 18, 2012

1. “Shadow Banking System Larger than at the Start of the Financial Crisis

One of the Main Indicators of Financial Danger Has Increased”

2. “Buy and Hold Is Dead … Did It EVER Work?

The story is that the true cause of the economic crisis was the reckless promotion of Buy-and-Hold Investing for 30 years after the academic research showed that there is zero chance that it can ever work in the long term.

The short form of the story is that the stock market was overvalued by $12 trillion in 2000. This is public information. All in the field acknowledge that stock prices over time revert to the mean (John Bogle calls this an “Iron Law” of stock investing). So those who were paying attention to valuations knew in 2000 that within 10 years or so close to $12 trillion of spending power would disappear from our consumer economy. An economic crisis became inevitable once we permitted stock prices to rise so high.

Dallas Morning News Columnist Scott Burns spilled the beans in a June 2005 column he wrote about my showing that the numbers used by most financial planners to help us plan our retirements are wildly wrong. Burns observed that the reason why we see few media reports about the errors in the retirement studies even though they will cause millions of middle-class people to suffer failed retirements in days to come if they are not corrected is that: “It is information most people don’t want to hear.” The “experts” (who see themselves as being in the business of selling stocks, not of giving independent and accurate investing advice) encourage us to follow dangerous strategies, and, once we do so, we become so emotionally invested in the strategies that we become hostile to hearing the realities.”

3. “Journalistic Cliches: ‘Surgical Air Strikes’, ‘Rooting Out Terror’, and ‘Cyber-Terrorism’ Cannot Conceal Reality”


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s


%d bloggers like this: