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FreeMarkets (37.33)

October 2010



Earnings grow 0.6% since 1960

October 30, 2010 – Comments (1)

"Historically, earnings have only grown by a surprisingly low 1% a year in real, inflation-adjusted terms. Mr. Arnott tells me the average since 1900 is only about 1.2%, and in the last half century just 0.6%."  [more]



Krugman's Revisionist History

October 29, 2010 – Comments (13)

Krugman's recent article "Divided We Fail" uses false claims, fear and outright lies to convince the reader that a Republican take over in Congress is going to be terrible for the U.S. economy.  [more]



Guaranteed Safe Investment

October 27, 2010 – Comments (9)

One of the great fears gold bugs have is inflation.  Gold isn't an investment, it's a store of wealth - a hedge against inflation.    [more]



FRED Graph - Employement Lagging Indicator

October 26, 2010 – Comments (4)

How many times can you be told a lie before it becomes the truth?  For almost a generation we've been told that employment is a lagging indicator.  Some people will point to a graph called the FRED Graph as proof.  Lets take a look:  [more]




October 25, 2010 – Comments (15)

Double dip, slow recovery or still in the first recession.  These are the arguments being discussed over the last few months by economists.  [more]



Exactly One Year Ago today

October 23, 2010 – Comments (1)

It was exactly one year ago today that I wrote the following.  [more]



Why Agreements Aren't Necessary

October 23, 2010 – Comments (16)

Yes, I picked a bad day to blog, but rec's aren't important to me, educating you is (and yes, I'm being sarcastic).  That said, news today from the G20 "The world's leading advanced and emerging countries vowed Saturday to avoid potentially debilitating currency devaluations"  [more]



Buy Low, Sell High

October 22, 2010 – Comments (2)

Isn't it amazing that people around the world say "Buy low, sell high", yet the G20 leaders are in an argument over currency devaluation.  And what is currency devaluation except the ability to sell good lower and buy other good higher.

Since this is the complete opposite of how to make money, we will only lose by following the FED down this path.



Honest Fiat Currency Question

October 20, 2010 – Comments (8)

To everyone who believes in a fiat currency and believes they understand it, I ask a simple honest question. Why does Japan have such a hard time reducing the value of the yen?  [more]



Tax the Rich!

October 19, 2010 – Comments (13)

There are opposing views to taxing the rich.  The left argues they need to pay their fair share.  Neo-Cons believe in trickle down economics.  Freedom lovers believe any income tax is theft.  [more]



I Blame You For Our Financial Crisis

October 15, 2010 – Comments (17)

It doesn't take long to figure out who's responsible for our current economic situation.    [more]



The Three Little Pigs (a retelling)

October 14, 2010 – Comments (5)

Once upon a time a group of concerned accountants started a campaign to try and encourage Americans to save more, the called it "Feed the Pig" (as in feed your piggy bank).  To simplify the story, we'll say there were three little Pig accountants, and they went off into the big wide world to try to make a positive difference.  [more]



Who's Tooting Now

October 10, 2010 – Comments (4)

October 9 latest news from the G20 "Various nations are seeking to devalue their currencies as a way to increase exports and jobs during hard economic times. The concern is that such efforts could trigger a repeat of the trade wars that contributed to the Great Depression of the 1930s as country after country raises protectionist barriers to imported goods." (Source)



All Good News On Unemployment

October 08, 2010 – Comments (12)

The markets are moving up in pre-market trading as employment figures showed more gov't jobs were cut and less private sector jobs were created than expected.  The market loves these numbers because it means the FED will be more aggressive in its QE2 plans.  [more]



FED Announces Work Stoppage!

October 06, 2010 – Comments (2)

The Federal Reserve Chairman, Ben Bernanke, has announced a work stoppage.  All work, except for 'critical staff', will immediately go home.    [more]



Inflation & Stocks

October 05, 2010 – Comments (1) | RELATED TICKERS: WSM , FDO.DL , DLTR

Lots of people are buying into the argument that it's better to be in equities than cash.  After all, the value of corporations goes up as the dollar devalues.  There is logic to this argument, but investing isn't that easy.  From 1972 until 1980, when inflation was NEVER below 5% annually, and four times broke the 10% barrier, stocks managed to LOSE 10%.   [more]

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