How Not to Ruin Your Life

Madoff: Many Questions Remain

Wed, 01 Jul 2009 01:52:08 -0800

So, Bernard Madoff has been sentenced to life plus a century and a quarter in federal prison for destroying the lives of thousands -- tens of thousands, hundreds of thousands -- of innocent men and women. That's a good thing, and I think we can assume that he won't enjoy his prison time a great deal. ...

Here's What Works in Any Economy

Tue, 16 Jun 2009 07:25:23 -0800

I received an odd request by email recently; it came from a lecture bureau in Canada, where I often speak. The bureau wanted to know if I could speak to a certain commercial real estate group, but first I had to definitively answer several questions:

1. When is the recovery going to start?

2. Will it be a rapid or a hesitant recovery?

3. How much larger a role in the world economy will China play after the recovery?

4. ...

Why This Time Feels Different

Thu, 04 Jun 2009 05:03:12 -0800

“This time, it’s different.” These are four of the most dangerous words in personal finance. They’re dangerous because "this time" is almost never different. This was explained to me by one of the smartest people in finance, Jim Rogers, many years ago.

The problem is that this time, during this particular financial crisis, it looks as if it really is different -- at least, it does to me. ...

The Economic Slump: What We've Learned

Fri, 15 May 2009 07:56:51 -0800

Are we at the bottom of the recession? The stores I see are empty, except for grocery stores. The car dealers are disaster areas. But the airports are mobbed and hotels are jammed where I travel, which is pretty much everywhere.

But more important than my anecdotes are statistical data. Inventories are shrinking rapidly, usually a good sign in a recession because they then have to be filled up again. ...

Want Peace of Mind? Spend Prudently

Tue, 05 May 2009 06:58:41 -0800

Recently I found myself on the top floor of One Chase Manhattan Plaza, a huge skyscraper near Wall Street. I was there to hear a panel on financial planning and to receive an award for my writings, including my writing in this space. As I waited and listened to the panel, I was overcome by feelings.

The men and women on the panel were extremely optimistic about the economy. ...

Big Brother and Your Taxes

Wed, 22 Apr 2009 03:01:13 -0800

Here is a scary story for you.

Recently a friend of mine, who lives in a city in Northern California, called me, extremely upset. She said she had just received a letter from the California Franchise Tax Board, the ruthless entity that collects taxes in sunny California.

The letter referenced her 2006 taxes, asking her how she had the means to buy a certain very expensive car she owns. ...

Stocks and Housing: Are They Putting in a Bottom?

Tue, 07 Apr 2009 01:44:05 -0800

As I write this, at the beginning of the second quarter of 2009, there are two contrary trends I am observing.

One is that the stock market and the housing market may be putting in a bottom. The stock market has put in a fierce four-week rally, but we have seen many false bottoms since this astounding stock market crash began in the fall of 2007. We do not yet know if we are facing another false bottom or a genuine rally. ...

Stocks and Housing: Are They Putting in a Bottom?

Tue, 07 Apr 2009 01:44:03 -0800

As I write this, at the beginning of the second quarter of 2009, there are two contrary trends I am observing.

Advice for Fresh Graduates During Tough Times

Tue, 10 Mar 2009 03:34:47 -0800

One of the great pleasures of my life is speaking to college and university students. My speeches are rarely political and mostly just the sharing of my experience, strength, and hope, to borrow a famous phrase. Lately I have been speaking a great deal about the economy, about which I know a bit, since I am an economist in real life as well as in movies and on TV. In my youth I also worked on economic policy matters in a small way at the White House. ...

Bailing Yourself Out

Mon, 02 Mar 2009 16:23:36 -0800

Here is some good news and some bad news. I'll give you the bad news first.

I was on a panel of smart, pleasant men and women last week, discussing the economy and, in particular, how it is affecting people selling vehicles with tires and wheels. I told the audience that the Federal Reserve, which has unlimited power to print money, had a program called the Term Asset Backed Lending Facility (TALF) that would help dealers restock their showrooms. ...