As an entrepreneur and capitalist, I read this critique of “Keynesianism” by John Mauldin with great interest. Unfortunately, I fear it is extremely misleading….
Category: Myth Busting
(Popular Myths of the Economy and Markets….BUSTED!
The Biggest Myth About Quantitative Easing
I have spilled a huge amount of ink about Quantitative Easing and its impacts over the last 5 years (see here). One of my key points about QE is to highlight how it probably hasn’t had as much impact on the broader economy as some people tend to imply. In other words, it’s not as stimulative as many think….
Is “Maximizing Shareholder Value” a Myth?
“Maximizing Shareholder Value” – A potentially dangerous concept, but not a myth….
Debunking the Myth that a Gold Based Monetary System Leads to Higher Growth & Greater Stability
One of the most common arguments in favor of the gold standard is that the USA had very high rates of growth under a gold standard. The era that’s commonly cited is the 1800’s. The argument, in essence, is that gold is a more stable form of money that won’t lead to inflationary booms and busts. But this isn’t always presented in a very balanced manner.
The “Fat Pitch” Myth
I was intrigued by comments in this interview with Marc Faber of the Gloom, Boom and Doom Report. He said: “I am hoping for the market to drop 40% so [ … ]
Cutting IOER Will not Stimulate Bank Lending
It’s become extremely fashionable in recent weeks and months for analysts and economists to propose cutting the Interest On Excess Reserves based on the assumption that this will suddenly stimulate [ … ]
The US Government is not “$16 trillion in the hole”
There was a very scary sounding report on CNBC over the weekend that said the US government is “$16 trillion in the hole” The balance sheet the article used was [ … ]
The Not So Great Rotation
Remember all that chatter earlier this year about the “great rotation” and how bonds were going to get crushed because everyone was “rotating” into stocks? That seems to have died [ … ]
Most Index Funds are Macro Funds
I’ve been having a good discussion on Twitter with Tren Griffin about indexing and value investing. Value investors are stock pickers. They think they can find the buried gems in [ … ]