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Pragmatic Capitalism

Practical Views on Money & Finance

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Understanding the Risk Profile Parity Strategy

Rich people typically lean right politically. Are they motivated by deeply moral views or self-interest? This column argues that money makes you right-wing. It shows that lottery winners in the UK are more likely to switch their allegiance from left to right.

Anatomy of Bubbles and Crashes

“There is no standard definition of a bubble, but all bubbles look alike because they all go through similar phases. The bible on bubbles is Manias, Panics and Crashes, by Charles Kindleberger. In the book, Kindleberger outlined the five phases of a bubble. He borrowed heavily from the work of the great economist Hyman Minsky. If you look at Figures 9.7 and 9.8 (below), you can see the classic bubble pattern.”

Is a House Really a Good “Investment”?

I’ve had this post queued up for three months debating whether to post it or not because I know it will ruffle a lot of feathers.  Then I read this great article confirming many of my thoughts and I figured I should just throw this one out there for everyone to kick around….   Recent… Read More

Thoughts on the “Value” of Fiat Money

I generally liked this post by Joe Weisenthal on Bitcoin and the value of fiat money.  In particular, I like these points: “But fiat currencies have tremendous intrinsic value because governments say they do. That’s why they’re called fiat currencies. They have value by government fiat. This truth might be annoying, but the fact of the matter… Read More

Redesigning the “Ask Cullen” Section

The “Ask Cullen” section has turned into a total mess with over 1,800 comments and absolutely no organization. So I added a forum style page that will organize the questions and comments better. It will be in the same place where the old comment section was on the front page menu bar. I hope this… Read More