Silver as an investment

Category Archives: consumer finance

Growing Housing Bubble Weighs on Canadian Economy

When the U.S. housing market went belly-up in 2007-2008, taking the global economy with it, Canada, unlike most of the world’s richest economies came through relatively unscathed. But some six years in, many of the same conditions that preceded the U.S. housing crash and subsequent global meltdown are popping up in Canada. Scarier still are […]

Austrians Point Out Fact Capital Is Radically Heterogeneous

Capital–not the federal U.S. capital; rather, capital in this piece refers to an amalgamation of capital goods, or “produced producers goods.” We can see in Mises Institute’s Roger Garrison’s slide farther below some of the types of capital at play. Austrian economist Ludwig von Mises says capital is represented by “the sum of the money […]

China Shadow Banking Is Market Response to Government Manipulation

Shadow banking, the nebulous web of bank and non-bank unregulated lending that creates an enormous chunk of the debt fueling the global monetary system, got a large share of the blame for the 2008 economic crisis. Now China’s unique version of shadow banking has swelled to epic proportions, creating some of the same conditions that […]

Consumer Freedom to Choose Critical to Market Pricing

Prices are subjective. Said differently, human-placed values vary— we are all different, and dynamic and that’s beautiful. If one stops to think about it, right there alone we can see that nature rightly denies such abominations as “price stability.” Moving prices inform action. The discussion below, while short, explains how price formation in free market […]

Affluence, Easy Credit Feed Chinese Bargain-Hunters’ Appetites for U.S. Swag

They have become a common sight at outlet malls—lines of tour buses with Chinese tourists eager to “shop ’til they drop.” Receipts bear this out. According to Tax Free Shopping, a company that processes tax refunds for foreign travelers, the average Chinese visitor to the United States spends $3,000 on luxury goods. Ironically, many items […]

Latest NASDAQ Freeze Intensifies Chill on Trading

It happened again. Last week the NASDAQ securities market froze up, crippled by another computer glitch. This time trading stopped for three and a half hours, and all orders were cancelled. Yet again, technical problems have dramatically spotlighted the shortcomings of the modern stock market. The NASDAQ crashed at 11:48 a.m. Eastern Time. All trading […]

Consumer Zombies Feed on Student Loan Debt

The student loan debt clock has added a whopping $52 billion—and counting—since we last discussed the student loan bubble in September 2012. Not only have the Federal Reserve and its cronies in the U.S. Department of Education failed to address the problem, but they also directly benefit from the runaway bubble. Meanwhile, the U.S. economy […]

So-Called Housing Recovery Offers False Promise of Economic Salvation

Nearly every day the news media bring reports of a housing market turnaround—one of several indicators and conventional sources misleadingly tout as evidence that the U.S. economy is slowly but surely making a comeback. Looking at home prices and sales volume rise, the outlook appears increasingly rosier with each passing day. A closer look behind […]

Disruptive Technologies Pave Way for New Business Paradigms

The explosion of the information age is rapidly changing the business landscape, spawning scores of innovative new business models, all inspired by and dependent upon social media and online communications. As always, existing legislation and government regulations lag behind, often virtually irrelevant to the new models. The purpose of regulating commerce and trade purportedly is […]

Credit Card Backed Securities The Next Big Short?

In this piece we look at the broader trends in the unsustainable search for traction in climbing the slope of increasing debt taken on by consumers who are seeing rising outflows and declining total income. There are over 4 million fewer full-time jobs in America today than there were four years ago; less income, more […]