I have uploaded a new show podcast for February 8, 2018. Click here to go to the show archives page to listen or you can listen on the link below. I have included links to relevant articles and media on the Show Archives page. The latest show is on the top of the page.
-The policies and precedents that started the equity and real estate bubbles go back almost 40 years.
-A recap of Bushonomics and its legacy. Peacetime deficit spending generates Treasuries that can be used for collateral. It creates asset inflation.
-The US government and USFed work to create asset inflation; it’s an open conspiracy.
-Defined contribution plans were established in 1981, the last year the Dow was at 1,000. This created a permanent upward repricing of equities. Trump’s tax legislation pumps equities.
-The Taxpayer Relief Act of 1997 drastically changed the tax code for residential real estate. It was phased in during 1998. Notice how house prices took off that year and never looked back.
-Every time the government subsidizes an industry (e.g. Education, medical, housing) the benefits are arbitraged into the market and only result in higher permanent repricing.
-Dow has the largest one day drop. Was it by chance? The Dow drops by 666 on Friday.
-Janet Yellen questions bubbles. Greenspan says the markets are all in bubbles. Mnuchin flip flops on the dollar.
-The confirmation bias and backfire effect are lethal in trading and investing. We need to remain objetive.
-The gamblers fallacy is another lethal error. Many people over the past week have lost big in the market turmoil. They fell victim to the gamblers fallacy.