The principle of homeopathic medicine is to “let like be cured by like”: treat an illness by giving patients minute quantities of medicines that produce the same symptoms. But treating indigestion with a 10-course meal is not a good idea. This is why throwing borrowed funds at the current economic...
Finding Value in a Loser’s Game
As John Kenneth Galbraith famously pointed out, we have two classes of forecasters: those who don’t know and those who don’t know they don’t know.
How a Freethinking Economist Saved Your Retirement Portfolio
Research by economist Richard Thaler, a professor at the University of Chicago, has “nudged” vast numbers of Americans to a higher savings rate.
PIMCO’s Gross Warns Fed’s ‘Helicopter Ben’ on Lending
PIMCO Chairman Bill Gross warned that the Fed’s ‘showering of money’ on the economy to combat deflation may end up harming long-term lending.
The Demand Side Dilemma
Put a chart up of where we were coming out of the 1981-82 recession under supply side versus where we are now and it’s hard to argue against Milton Friedman and government laissez-faire.
The Perils of Prognostication
Strategists from most Wall Street experts predicted 10-12% market growth for 2011 while only two called for minor declines.
Historical Research: Inventing Financial Futures
In November 1967, University of Chicago economist Milton Friedman was turned down for a loan, a rejection that ended up changing the course of financial...
More Is Less
Malcolm Forbes once compared inflation to dandruff, saying both were problems without solutions. For investors who would like to give inflation the brush-off, it might...
Build Your Own
Open-ended funds are so five minutes ago. Through the countless articles that slam such traditional investment vehicles in favor of the more liquid and less...