Category «Finance & Money»

What the H*ll is Money, Anyway?

Today I want to begin a multi-part discussion of money–what it is and what it isn’t. Imagine yourself on a remote island with tropical fruit growing all around you and more fish swimming along your shores than you could eat in a lifetime. The weather is warm all year-round and there are no mosquitoes. What …

Beware the Pump and Dump

In the old days, way back before Al Gore invented the Internet, stocks, shares of company ownership, were sold through brokers. They had nice offices in A-list business-district buildings. Stock brokers wore suits and ties. They sat behind walnut desks and smoked expensive cigars (Yes! Even in the office!). Clients would meet with them face …

The Spanish Empire Redux?

One of my hobbies is reading, and specifically reading history. I find the parallels of historical events to life in today’s world fascinating. We’ve all heard that history repeats itself. Others say it doesn’t exactly repeat, but it rhymes. Either way, there is nothing new under the sun and we can better understand our own …

Dig Your Well Before You’re Thirsty

It’s back to financial and economic news today. Maybe I should say money news—economics is boring but everyone likes money. Paul Krugman said in a recent column that he’d like to hear some major apologies from all those politicians and economists who predicted massive general price increases from the inflation of the money supply since …

What’s Wrong with Capitalism?

I had a question from a reader the other day. You may have thought the same thing. To wit, “You say you’re an unabashed capitalist, but your articles pan the financial industry and the way business operates in these United States.” What’s up with that? I’m glad you asked. Before any large enterprise can begin, …

The Writing On The Wall

Be completely honest with yourself. If you heard the sentences below on the news or read them the newspaper, would you have any idea how the information contained in the sentences affected your life? “Traders saw the bid, recognized that the government was intervening to support the market, and the bid was front-run with the …

A Shot Across the Bow?

Was yesterday’s Dow Industrial Average plunge a shot across the bow? An early warning of the beginning of the end? Or was it just a random hiccup? Yesterday, February 5, America’s biggest industrial stock market index took an icy plunge, falling by 1,200 points, or 2.18 percent, to 23,923.88. That followed the previous business day’s …

Insurance – Part 2

In Part One of this article we explained, very basically, what insurance is. Insurance, in the most fundamental explanation possible, is paying someone else to assume your financial risk. For example, if you own and drive a car, you have a risk of being in an accident. The details of the accident are immaterial to …

Insurance – Part 1

I’ve been thinking about insurance lately. Maybe this is because of my naturally intelligent, inquiring mind. Or maybe because a tree limb fell on my car and I had to make an insurance claim. Take your pick. I’m going with the first. Voltaire said, “If you want to converse with me, first define your terms.” …

Rich Get Richer, Poor Get Poorer

The rich get richer and the poor get poorer. Yeah, yeah, we’ve heard it all before. But you know what? You’re right. The rich live by another set of rules, they play a different game, and you and I aren’t invited. We’re not even allowed to sit on the bench. I know a guy who …