Rising Interest Expenses Mean the Government Will Lose Control Over the Budget
It’s no secret that the US government has a problem with spending and debt. For decades the government has consistently spent more money than it takes in, requiring it to issue debt to fund its operations. Even the so-called years of budget “surpluses” in the late 1990s resulted in increases in the national debt since off-budget deficits outweighed on-budget...
How Much Money Will You Really Spend in Retirement?
One of the difficult parts of planning for retirement is figuring out just how much money you’ll need to live on. With no wage income coming in after you retire, your income stream will depend on what you’ve been able to save and invest over the course of your lifetime, plus any additional income from pensions, Social Security, and...
New Fed Chairman Is Just as Clueless as All the Others
Fed Chairman Jerome Powell attended his first Jackson Hole symposium as Chairman last week. His inaugural speech to the Kansas City Fed’s annual event was widely anticipated and closely watched by market observers. And to no one’s surprise, his understanding of the economy is just as flawed as that of his predecessors. Rather than understanding the economy as a...
When Everyone Says We’re Not in a Bubble, That Means We’re in a Bubble
Some of the highest-flying stocks of the past few years have been tech stocks. With the rise of cryptocurrencies and the creation of “disruptive” companies such as Uber and Airbnb, investors have been falling all over themselves in an attempt to cash in on the latest tech boom. Whether it’s investing in newer companies such as Tesla or established...
Are Millennials Really Different From Previous Generations?
The millennial generation, those born between about 1981 and 1996, has been the subject of a lot of press. Millennials differ significantly from their parents in their consumption patterns, particularly when it comes to homeownership. If you’ve been keeping tabs on the housing market in the past few years, you probably are aware that housing prices continue to rise...
President Trump Continues to Pressure the Fed
Only a few days before Fed Chairman Jerome Powell is set to deliver his first address to the Kansas City Fed’s annual Jackson Hole summer gathering, President Trump has made it increasingly clear that he isn’t happy with the Fed continuing to raise interest rates. According to Trump, “I’m not thrilled with his raising of interest rates, no.” Of course,...
US Government Debt Problem Is Spiraling Out of Control
A recent publication by the Congressional Budget Office (CBO) highlighted the grave danger that faces the US economy as the government’s debt position continues to spiral out of control. The US national debt has already increased to more than 100% of GDP, and under certain scenarios CBO predicts that could reach as high as 165% in just 20 years....
Some Common Retirement Myths Debunked
Most Americans are serious about saving for their retirement. The dream of finally being free from being tied to a job, being able to travel and do what you want, has always appealed to many people. And that’s why retirement planning has become such a large and lucrative industry. But many people unwittingly make mistakes in their retirement planning,...
The Fed Continues to See No Problem With Inflation
Chicago Fed President Charles Evans made headlines recently with his comments about higher inflation not being a problem. While the Fed has set a target of 2% for price inflation, and worried for years that inflation was lower than that figure, recent data indicates that inflation is trending higher and will continue to rise. According to the Bureau of...
Housing Market Continues to Confound Experts
Housing prices throughout the United States continue to rise, with recent data showing that prices increased nearly 7% from a year ago. That’s the fourteenth consecutive month of price increases, an incredible run. And while that will eventually have to come to an end, when will that happen? For more and more Americans who want to buy houses, the rising...