The FDIC Nightmare

Wal-Mart is often criticized because when they put up their store in a small community, they drive out small businesses and mom and pop stores which cannot compete on price.  Nevertheless, Wal-Mart still pays taxes and has a cost of capital, so they cannot go everywhere.  Imagine if a Wal-Mart like competitor to small business […]

The Bond Bubble

The financial press has given credence to those who insist that, because interest rates have fallen rapidly since April, we are in some kind of a bond bubble.  Investors, they say, should shy away from fixed income because, surely, they will be hurt when interest rates rise.  Technically, this statement is correct – the crucial […]

Fighting the Economic Headwinds

I have written many blogs about the faltering U.S. economy and the continuing headwinds that will prevail for the next few years.  The headwinds include: A consumer balance sheet loaded with debt with flat to falling income; The  consumer’s major asset, the home, continues to fall in value with approximately 25% of homeowners with mortgages […]