Perspectives

TSP & Vanguard Smart Investor Posts

Smart Bird: Corrupt Beyond Pale

One wonders if the Fed would have sat at savings destroying zero percent interest rates for a decade or talk about going negative interest rates if they were suffering from their policies like pension funds and savers. Instead they are trading the tsunami of money printing like leverage hedge fund managers.

TSP Smart: National [Financial] Security & the Rise of China

Risks grow exponentially during the “Terminal Phase” of Bubble excess. I assumed Beijing would move decisively to rein in excess, particularly in lending and apartment speculation. But what is now unfolding goes way beyond measures to contain excess. China has begun a transitioning phase, with momentous yet uncertain consequences and ramifications. What began seemingly as a campaign to rein in apartment speculation and crack down on the big tech monopolies has speedily developed into something much more systemic and Draconian.

TSP Smart: Nice correlations

Larry Summers: Out of all the things you could spend the money on, the thing that it seems to me that would help the wealthy most and do the least to promote demand, is buying up financial assets. And that’s what QE is.

TSP Smart: Unstainable

Millennials have a fraction of the wealth the boomers had at the same age.  College costs 10 times more today than when I went to college leading to college debt serfs.  Homes prices are up 500% since I graduated thanks mostly to suppressed interest rates creating home mortgage debt serfs.