Category: Articles

“The most powerful force in the universe is compound interest” Albert Einstein    “Not any more…” Ben Bernanke Einstein was a genius known for his simple elegant expressions of complex natural laws.  Indeed, what is simpler than E=MC2? While it may be urban legend that Professor Einstein was reputed to have said that compound interest was…

In my youth, my father worked hard every day and looked forward to receiving his Social Security benefits when his time was due.  When he finally began collecting, combined with a modest pension from General Motors where he worked for over 40 years, he was able to comfortably support himself and his family.  By the…

Years ago we were more entertained by our government’s actions because we were younger then and not threatened so much by their policy decisions. But now as we approach retirement age, we are becoming simply enraged and disgusted by the decisions made in Washington. First, there is no question that older Americans on fixed income…

In Presidential politics, when you get beyond the culture wars, wedge issues, religious right, taxing the rich, pro-choice, nuking the gays, the Tea Party Movement, and NIMBY, one election truth holds clear:  A sitting President running for a second term has never lost an election when unemployment was low and the economy was good.  On…

The crux of any economic theory starts off with the magic words “first assume that” and then using dazzling logic follows an irrefutable happy conclusion. The real key to using economic theory and logic is in the assumptions.  Assume the correct things about the world, and you have a chance of getting the outlook right. …

America’s economy is in shambles.  Fiscal policy is totally gridlocked between Democrats who want to see some long term tax increases, and Republicans who only want spending cuts.  Worse yet, the Republicans view economic failure in America as a good thing as they believe it will enhance their chances of recapturing the White House. Because…

When business slows down over the summer months, I finally have some time to reflect and do a little economic detective work and, yes, an occasional jig saw puzzle.   Trying to figure out what is going on in the world these days is extraordinarily similar to putting the pieces of a puzzle together.  Within the…

“What goes around….comes around” is an old adage with common sense logic.  It’s just perfect karma for those with an affinity for the concept of eastern thought.  However, if this simple cliché means you got what you deserved and justice prevailed, the Federal Reserve has a lot of explaining to do to the American people…

There is no question that buying a home can be an emotional experience.  Sometimes the desire to own is so strong the “want” to own outweighs the actual “need” to own.  This strong desire can suddenly run into a brick wall of economic reality, however, when a would-be buyer realizes they do not have sufficient…