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Funny part was the first third of video, I was having a hard time telling if this was old Volcker from the early 1980s under Reaganomics or now. Sounds about the same. Until he got to sub-prime credit collapse part (which could have been substituted for the S&L crisis of that era) it all about sounds the same.
Yep! This ridiculous FIRE economy of ours, its the same crap. If you are from the North East do you remember what the result of S&L was? Run up in home prices and then a subsequent 70% market correction in many places in the NE. Funny how silly people allowed history to repeat itself
So true but usually it takes a generation for it to happen. Generally people remember the bad times and you don't have the same thing happen until the next set of dummies are born.
I do not intend to begrudge anyone for their degree. I have no heartburn with some folks attending college to study economics and finance; my degree is in theology.
However over the years, I have found myself many times in debates with men, who have degrees in economics.
To me, in my way of thinking; buying apartment buildings with zero down and using the rental income to operate them seemed like a good idea. So I was collecting a few at each duty station. To me learning to itemize my taxes, so I did not have a tax obligation, was also smart as I was not sending 1/3 of my income to the IRS. I was able to increase my take-home pay, and I was able to be building my Net Worth.
Alas all of these things were totally wrong according to the men that I have rubbed shoulders with who have had their degrees in economics.
They can repeat what they were told in college, they can read the news and make their pronouncements. And they often give other folks financial advice based on all of this. Often it is all based upon the stock market. I view the stock market as a form of gambling. For each day trader who 'wins', another loses. They work the odds and hope on chance, and maybe the dice will be good to them.
For some reason the adage: "those who can do; those who can not teach". Seems to ring true.
College professors have rarely accumulated large Net Worths, but they will spend a career teaching others how to operate business, how to handle money.
Currently at my VFW post we are in a heated debate. One guy with a business management degree insists that the post should get a mortgage on it's building to get money to fix the roof. Currently our monthly cash flow is not enough to pay such a mortgage. But the colleges teach that all business models need to begin with a huge debt load. So since he has his degree and he knows best, they are trying to get a mortgage onto our mortgage-free building, to allow us to fix the roof. Then next year we can worry about how we will repay the mortgage. So in all likelihood the conventional wisdom of the 'experts' will see this VFW post filing bankruptcy in the future.
During my 20+ year career in the US Navy, one of the things that I did was I took courses on budgeting and investing. I was certified as a Financial specialist. I also was certified by the IRS to do taxes and I volunteered helping others to fix their credit, to get out of debt, to file their taxes, to form investment plans, and to do tax-planning.
In all of this I have learned that some folks out there do have the degrees and sound like they should know a lot about handling money; but often their Net Worth does reflect such wisdom.
If you desire advice on budgeting, seek someone who is very frugal.
If you seek advice on investing, seek someone who has been successful in their investments.
If you seek advice in your tax-planning seek someone who does not pay income taxes.
These people do exist, and they are building greater Net Worths even in these 'dire' times.
Is this a F.I.R.E. economy? sure okay.
Does that mean nobody can prosper? no, folks will still prosper.
I am not sure what any of that had to do with this topic, but ok.
I see FBK's observations as the theoretical extension [he is a theologian, so he is allowed ] of the posts above regarding deja-vue-all-over-again We have been here. We know the bad outcome. More specifically THESE same exact people have been involved. Consider McCain -- a leading Presidential Candidate was one of the Keating 5.
It exists in our leadership across the board. Consider [GEN] Powell, having learned as CPT Powell, from the Vietnam War, had advised against Iraqicide type events, as did Cheney -- old Nixon hand. But it is like they get stupid and support what they should know will fail. The morons all supported it. Like THIS time somehow, someway, something different will happen.
In the trades we call the condition from folks who have been around, but fail to learn as "1 year's experience, 20 times." Same thing FBK is observing from the educational sector -- they study, and ponder, and then go create the same mass stupidity.
Ah I see. I didn't agree with their post on professors though. But thats because I work at a university and know many professors. With the exception of a few new professors many of the old timers here have worked in the field, made their money (or are still making it) and now sit back and teach (this is for a non research institution). For research institutions the professors are doing what they teach and get paid for it via grants and research, endowments etc.
For the last 30 years the US economy has been based on a boom & bust cycle in which the connected have ridden the booms and bailed before the bust. This is called Reaganomics etc.
Financiers are addicted to borrowing your money, my money and the Fed’s printing press. They are not willing to use their own money. They gain and we loose is a proper business model if you are a financier. Many people have learned the hard way that you cannot trust Republicans with your money. They will borrow and borrow and spend and spend without any intention to ever paying anything back with their own money. That is our problem.
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