Entries by Charles Smith

Economic Bubbles #2 – The Cruel Injustice of the Fed's Bubbles in Housing

As the generational war heats up, we should all remember the source of all the bubbles and all the policies that could only result in generational poverty: the Federal Reserve. Federal Reserve chair Janet Yellen recently treated the nation to an astonishing lecture on the solution to rising wealth inequality–according to Yellen, low-income households should […]

Economic Bubbles #1 – Why Living in a Post-Bubble World Is No Fun

What do we do when the bubble economy cannot be reflated? It is generally conceded that we are living in an era of Peak Everything: peak central bank omnipotence, peak powerless of the non-elites, peak wealth inequality, peak media-induced delusion, peak market-rigging, peak bogus official statistics, peak propaganda, peak bread and circuses, peak deception, peak distraction, […]

Why Has Classical Capitalism Devolved to Crony-Capitalism?

Here is the quote that perfectly captures our era: “People of privilege will always risk their complete destruction rather than surrender any material part of their advantage.” (John Kenneth Galbraith) The trick, of course, is to mask the unspoken second half of of that statement: everybody else gets destroyed along with the Elites when the system implodes. […]

We're Relying on Phantom Wealth to Fund Our Retirement

Phantom wealth cannot possibly fund unprecedented retirement and healthcare promises. The narrative that Social Security, Medicare and pension funds invested in stocks and bonds can fund the retirement of 65 million people is a misleading fantasy. The sad reality is we can’t fund the enormous expense of retirement/healthcare for 20% of the populace out of our […]

The Generational Short, Part One: How Generational Changes in Values Could Affect the Market

If Gen-Y cannot afford to buy Boomers’ houses at bubble-level prices, then what will keep housing prices at these elevated levels? Last month the Brookings Institution published a study by scholars Morley Winograd and Dr. Michael Hais on changing generational values: “How Millennials Could Upend Wall Street and Corporate America.” The gist of the report is that Gen-Y […]