Spend to Revive the Economy?

Perhaps I'm just crazy but I disagree with the Fed Head Bernanke's thinking that it is consumer spending that is the key to pulling us out of this recession.   I may not have the piece of paper (AKA finance degree) that says I ought to know about finance, but I do have a brain and can not understand why the Fed thinks that spending more money when you already have a huge deficit will pull you out of a recession.    I thought by now the Fed would have slowed down it's printing and not promise anymore bailouts but they said they were going to do just the opposite at the last hearing.   I believe the bailouts and all this government spending in 2008 helped slow down the speed at which our economy is falling into recession but it did nothing to bring us out of one.  Deficit spending does not allow for a country to grow economically and improve it's productive capacity.   To think so is pure madness. Why?

What is Money?

What is money exactly?  At first it might seem obvious what money is, but is the definition of money really as simple as saying it's the dollar and quarter sitting in your wallet?  I don't think so and this may explain why the term paper money creates a lot of confusion.

Economics is About the Common People

One of the things I love about economics is that it is so broad and all encompassing.  Things that appear to be seemingly unrelated actually are. The more books I read, the more investment vehicles I use, the longer I trade in the stock market, the more I realized how the mindset of a seemingly insignificant average joe could drastically alter a nation's GDP.  How can the whim of an average person have such far reaching effects you might ask?

Fight Over Money? I'll Take a Piece of Slightly Rotted Cow

I was watching a show on the Travel Channel and laughed when I heard that the African tribesman on TV thought cheese was disgusting and couldn't understand why Americans would want to eat spoiled milk. Likewise, I'm pretty sure American viewers like me were baffled to learn that while the tribesman thought cheese was disgusting he thought eating the fresh blood clot of a cow was perfectly normal. What makes me wonder what is normal anyways? I guess it just depends on what you're used to and what your perspective is. I believe the same holds true for money.

Stock Market Booms Are Not A Good Thing: Yin Yang Economics Part 7

You know what I don't get?   Why do economists and all the talking heads on TV say stuff like the economy is recovering or is booming because this financial number or that number is doing well, but yet when you walk around and actually look at US cities and neighborhoods, people are still homeless and jobless and there isn't anything US made on store shelves anymore?

The Fallacy of Higher Education: Yin Yang Economics Part 6

It used to be that getting a college degree was that of a privileged few, but nowadays a college degree is a dime a dozen and doesn't mean much anymore to potential employers.   In this tough economy, it's becoming more about who you know that gets you the job not your degree.  Networking has always been very important in landing a job, but now this is true more than ever before.  I would say even more important than a degree from Harvard in some cases.  How did I arrive at this conclusion?

Pay Me Money to Lose Your Money: Yin Yang Economics Part 5

If you're interested in investing money you probably already figured out the fallacy of hiring someone to earn you money. Seriously, think about it. If someone came up to you and said, "Pay me thousands of dollars to lose your money over an extended amount of time," would you hire them?