The Fiscal Cliff Explained ... Good for a laugh IMHO A friend shared this photo with me recently on the topic of the "Fiscal Cliff." The argument presented is pretty straightforward and simple to understand: Families can't live beyond their means and so country's shouldn't either. Interesting analogies. And entertaining. But keep this in mind. No country that prints its own currency has ... Read More
Debt Crisis
Buckle Up and Hold On: Investment Roller-Coaster Ahead
When you're on an airplane and hit turbulence or rough weather, the flight crew tells you to stay seated and buckled. Unfortunately, when the markets hit bad weather, there is rarely such a warning. You might want to call it "Black Thursday." Yesterday, the markets around the world went into a tailspin reacting almost violently to the ongoing drumbeat of dour economic news. On the radar, ... Read More
Cash Flow the Source of Many Debt and Financial Crises
Shakespeare was right. In Hamlet, one character, Polonius, counsels his son "neither a lender or borrower be." While not entirely realistic, then or now, it does have a grain of truth in it. Too much debt limits one's flexibility and options. If you borrow too much, you are forced to service that debt with resources that can't be used for other things. If you lend too much, you are at risk of ... Read More
