Archive for Economics
Economics Rap Keynes versus Hayek – Entertainment & Education
Posted by: | CommentsYou have to watch this for the entertainment factor. However there is an underlying lesson of the opposing sides in the economics debate. Interventionist economics with the associated stimulus and demand driven economic thrust which dragged the west out of the depression was led by Keynesian thought, versus Hayek’s prospectus proffered by Margaret Thatcher which dragged Britain out of the 1970’s gloom into the modern world. This video is funny, educational and really cool, at least for us stock market buffs.
One thing is for sure the direction of the market, as highlighted in my forthcoming book and training course, is dictated by the business climate, which is dictated by the economic principles practiced during the era. The modern era of the west is driven by Keynsian economics, which leads to boom and bust. But who is to say the Heyekan prospectus would yield riper fruit. The day when economists agree and find the right path will be the day hell freezes over. One thing is for sure, the power and wealth of nations is dictated by the success of the economies that drive them.
Boom and bust details are highlighted in a previous post. Boom and Bust
Good night.
All credit to the folks at http://econstories.tv for a top video.
p.s. Keynes was British not American and Hayek was Austrian.
Stock Market Guide – The Big Picture
Posted by: | CommentsThis is a video of the article entitled “The Big Picture”, I run through the article and add additional insights and observations. Here I put economic events into context and look at how even in the darkest recessions industry group analysis can uncover hidden gems. Also I show the power of trend lines and how to use them on a long term change to avoid huge losses as we head into bear markets.
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Interpret How Global Events Can Affect Your Investments
Posted by: | CommentsEconomic Health and how it affects the stock market.
What is happening in the world. ahhhhh Don’t Panic !!
- Financial crisis, the current crisis is nothing new a crisis occurs every 20 years or so where some event occurs to cause a correction in the markets and widespread panic to investors. The recent Credit Crisis is different only in the fact that the pullback was so rapid and volatile. The SP-500 has pulled back to the 2003 lows in 3 months. When the tech bubble burst in 2000, it took 3 years for that pull back to happen.
- Banking system : massive failures in the banking systems and a lack of regulation has largely been attributed as the main cause, of the domino effect
- Demand downturn : this has occurred because of the financial crisis, people are already in debt, and cannot finance new debt, therefore they are reducing their spending.
- Increase in unemployment : as demand reduces, so we need less jobs to make the products that nobody wants anymore.
- Developed world Debt : the developed world is taking on too much debt, the developed world lead by the US is taking on a lot of debt to create a stimulus package, to kick start the economy, and create jobs.
- Market Volatility : Stocks and shares have become very volatile (this happens when people get too emotional), and have nosedived, to below the 2003 crash.
- Continued Political unrest in the usual hotspots.
— Middle East (affecting Oil Prices)
— Terrorism (affecting Oil Prices)
— Africa / North Korea / Iran
