Ep. 62 – THE DOC FROM SD BULLION: “Deutsche Bank will be nationalized or bailed out.”

In episode 62, Phil interviews The Doc from SD Bullion to talk about the recent moves and bright future for silver.  Phil and John cover the hypocrisy of Bernie Sanders and the financial literacy of most Americans.

Ep. 61-JASON BURACK: “There are so many black swans out there “

In episode 61, Phil interviews Jason Burack of Wall Street for Main Street to discuss the troubled global ecomony.  Phil and John cover the problems with Tesla and government subsidies.  Share us with a friend!

All Fiat Currencies Are Destined For Failure

In episode 59, Phil interviews the Dollar Vigilante, Jeff Berwick, to discuss the numerous economic obstacles facing Americans.  Phil and John also discuss the ongoing irrational exuberance in the housing market and how to spot it.  If you like what we’re doing, then tell a friend!

The original silver investor David Morgan will be featured in the next post, so be on the lookout for it!

Financial Judo Audiobook!

In episode 55, John and I sat down with Joe Luppino-Esposito to talk about the state of the criminal justice system. Phil also covered the malinvestment and misallocation of resources created by Wells Fargo. Check it out!

More good news! The audiobook to Financial Judo is out. If you know someone who is struggling with money, then send them this FREE audiobook narrated by me.

Finally, I’m always on the lookout for “irrational exuberance” and contrarian indicators. Please share some from your area in the comments section below!

The U.S. Economy Explained

The story of the Titanic shipwreck is a lesson about what happens when man’s hubris reaches epic proportions.  We’ve all heard the story about how the Titanic, thought to be unsinkable, sank to the bottom of the icy Atlantic on April 15, 1912.  The ship’s captain, Edward Smith, sought to impress the world with Titanic’s record maiden voyage across ‘the pond.’  Despite knowing his ship could strike an iceberg, he still ordered the record setting pace.  The Titanic did indeed strike an iceberg, and approximately 1,500 people lost their lives in an event that was totally preventable.

Like the Titanic, the U.S. economy has had a captain at the helm who is ignoring caution and the lessons of their trade.  That person is our Federal Reserve Chairman.  Unlike the Titanic though, the U.S. has two captains whose hubris will ensure our tragic ending.  In this Kennedy Financial video, we examine the last decade and witness the slow demise of an economy once thought to be ‘unsinkable.’

Please share this with someone looking for answers.

“Fool Me Once…

Home-Underwater

There’s an old expression that George W. Bush once butchered.  “Fool me once, shame on you.  Fool me twice, shame on me.”  This adage certainly applies to the biggest financial collapse in recent memory, the housing bubble.  Most adults over the age of thirty vividly remember the consequences of the bubble and subsequent credit crisis.  The fear of market contagion and the collapse of Lehman Brothers led then Treasury Secretary Hank Paulson to orchestrate a bail out of the country’s largest banks.  Paulson created TARP, the Troubled Asset Relief Program, and the U.S. tax payer suddenly became responsible for the poor decisions of Wall Street businessmen.  Although Americans have spent an exceptional amount of time focused on these crooks since the crisis, the real cause of the housing bubble seems to have been forgotten or purposely overlooked.  Lucky for you, I still remember.

Back in late 90’s, the Clinton Administration wanted more people to be able to afford a home.  The Federal Reserve, run by “The Maestro” Alan Greenspan, accommodated the goal by decreasing interest rates.  Lax lending standards became the norm, and Fannie Mae and Freddie Mac guaranteed all mortgage loans.  This provided defunct firms like Countrywide with the moral hazard it needed to make a mortgage to anyone who could fog a mirror.  The practice picked up even more speed during the Bush years, and finally ended in collapse during the financial crisis of 2008.

During the mania, there were many indicators that there was a bubble brewing in the marketplace.  A story of Las Vegas hairdresser purchasing multiple homes with interest only mortgages stands out as a glittering jewel of foolishness. Television shows like Flip This House persuaded Americans that anyone could become a real estate mogul in the new housing economy.  Anecdotally, one of the worst students from my high school told me in 2005 that he found a job working for a mortgage broker.  After the bubble burst, I swore that I would never be duped by such irrational exuberance again, and I would make sure to look for these contra-indicators in the future.

Well, they’re back!  The house flipping shows are back in full force on HGTV with programs like Property Virgins and Flip or FlopInterest only loans are back and other subprime loans have returned while banks try to scrape the bottom of the applicant barrel.  Although I don’t personally know any fools working in the mortgage industry this time around, I still hear people saying that a house is a good investment.  To that, I’ll borrow the words of W and say, “You’re not gonna fool me again.”