Wait; Stop; Take a Deep Breath – remember your basic macroeconomics
July 10, 2009
– Comments (7)
It is easy to get lost in the ridiculous chatter of business journalists posting stories, who essentially know no more than the average Fool. “V” or “L” shaped recovery? Monetary vs. fiscal policy? Whadyamean you only spent 5-10% of the “stimulus” money? Unemployment, but U3 vs. U1 vs. U6? Does TALF and PPIP count as the Treasury “printing money”, inasmuchas these are backed by securities?
Please: put down the website editorial or newspaper rant for a week or two. Nothing big will change in the interim. If you have any sort of objective text on macroeconomics, now is the time to re-acquaint yourself with it. No, the standard college text (like the one I had for Econ 101 at Cal, which was hopelessly pro-Keynesian) will certainly NOT do.
OK: where to get info? Try Investopedia’s tutorial for the Level 1 CFA exam. I also have a cheapie paperback that I like: “Macroeconomics”, published by Schaum’s and the author is Eugene Diulio. Whatever, make sure you get a truly objective author to guide you through these very complicated matters.
Please: macroeconomics and policy and what influences them is NOT a trivial subject. Where the US economy goes from here depends on these things. If you take your investments and your financial future seriously, you truly need to educate yourself. Do not rely on “experts” or “journalists” or whatever they are calling themselves today.
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