Baby Boomers

The Declining Confidence of Americans

I account for the real possibility of civil unrest when I make investment decisions. Civil unrest is one of those things that will have an inordinate effect on the gold price. If gold has come this far from good old government mismanagement alone, imagine how high it can go if Americans protest. It has been quite some time since protests due to a weak economy were even a remote possibility….

Record Job Cuts in States

In further evidence that our economy is in the process of slowing, states are projected to make record job cuts in the 3rd quarter. As I’ve said before, states in the U.S. are indistinguishable from Greece. The arguments that the U.S. won’t suffer a huge crisis since we own the reserve currency and can print our way out of this just do not apply to the states. States need to balance…

Quantitative Easing Now Guaranteed?

I’ve said several times that there will be no end to quantitative easing since we haven’t addressed any of the issues that got us in trouble in the first place. In a lot of ways, the problems are even worse: our debt is bigger, “too big to fail banks” are bigger, the unemployment rate is higher, and positive equity has turned into negative equity for countless homeowners. With the weaker…

Real Estate for Boomers

Yesterday I posted an article on my facebook page about how banks were building a real estate empire of foreclosed homes. As we all know, banks are in the business of making loans, not owning and managing homes. Although home prices have dropped considerably, the housing crisis is still alive and well. Here’s a graphic from the article that will help you to visualize the foreclosure crisis: The way I…

Where Will the Money Go?

Our leaders would do all of us a favor if they took a course in common sense economics. Common sense economics attempts to view things from the perspective of the global consumer, not “too big to fail” transnational banks. Those with a common sense approach to economics know that lowering interest rates won’t boost domestic spending because Baby Boomers dominate the wealth in America. The Fed is essentially assuming that Boomers are…