January 2011 Archives

Interesting thing about politicians... They spend your money and the money your children will someday earn and often borrow from regimes which aren't friendly to our interests and with this cash they give you things which seem like they are free. Other times the spending comes from increased taxes on businesses which decreases salaries and reduces money which a company could use to train workers for a future career change.

America is slowly waking up to this political trick and its why I think this ad promoting Mitch Daniels for President is very effective. Not because I don't believe everyone in society doesn't deserve to have a great life - but because I believe individuals and corporations and a free market system with minimal government intrusion and regulation are the best path to helping the most people while keeping them motivated to be productive as the US competes in a global economy.



Rich Tehrani Continue Reading...

As Dennis Prager points out, most of the country considers themselves either on the right or independent but the left has become successful by capturing the mainstream media and Hollywood. Personally, I would add university professors into the mix.

As Prager points out, the recent Arizona shooting shows the left will routinely lie about the right and change the subject when caught. Those people who watch the media objectively see the reality before their eyes and it seems finally, others are learning about how a newspaper like the New York Times uses its elevated position to assign blame to the right whenever possible - especially it seems when unwarranted.

Finally, with talk radio, the Internet and new stations like Fox News - the fastest growing news network in the country, the public is able to see ALL sides of the issues and make up their own minds. Continue Reading...

Sure, keep trusting those “experts”

I am not a financial expert nor am I an economist – but considering they all have missed virtually every significant financial event from the dotcom bubble to the telecom bubble and the housing bubble let’s just say not being an economist or financial expert probably is a distinct advantage.

Having said this, I would like to discuss a few issues which need to be out in the open and discussed before the new Congress begins.

Bank runs are bad

Banks do not keep all of their assets in cash meaning if the majority of a bank’s customers decide to withdraw all of their money at the same time, the bank collapses. Think about it – they loan much of the money they have to others and don’t have access to it all. When one bank collapses there is a chance other investors will get spooked and create a cascade of bank failures. When not stopped, you have the potential for another Great Depression.

Bank runs are currently stoppable because governments can stop them

To date, bank runs have been stopped because governments around the world have been able to stop them by assuming the bad loans the banks have made.

Soon, global governments may not be able to stop the bank runs
With all the debt global governments have amassed, there is a possibility at some point that investors will start a global bank run meaning county after country will see their banks collapse because the confidence in the ability of a country to pay back its debt has plummeted.

Ireland may kick off a worldwide panic

If you follow financial news you may know much of Europe is in trouble because in general they work less hours than they should and produce far less than they need to in order to sustain the lifestyle they live. Continue Reading...