Tag Archives: ETFs (exchange-traded funds)

May 19 2019

Interest (part 2) | Interest and debt | Finance & Capital Markets | Khan Academy


Published on Apr 22, 2008

SUBSCRIBE 4.8M
More on simple and compound interest. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics… Missed the previous lesson? Watch here: https://www.khanacademy.org/economics… Finance and capital markets on Khan Academy: This is a good introduction to the basic concept of interest. We will warn you that it is an older video so Sal’s sound and handwriting weren’t quite up to snuff then. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We’ve also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1R… Subscribe to Khan Academy: https://www.youtube.com/subscription_…

 

May 19 2019

Introduction to interest | Interest and debt | Finance & Capital Markets | Khan Academy


Published on Apr 22, 2008

SUBSCRIBE 4.8M
What interest is. Simple versus compound interest. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics… Missed the previous lesson? Watch here: https://www.khanacademy.org/economics… Finance and capital markets on Khan Academy: This is a good introduction to the basic concept of interest. We will warn you that it is an older video so Sal’s sound and handwriting weren’t quite up to snuff then. About Khan Academy: Khan Academy is a nonprofit with a mission to provide a free, world-class education for anyone, anywhere. We believe learners of all ages should have unlimited access to free educational content they can master at their own pace. We use intelligent software, deep data analytics and intuitive user interfaces to help students and teachers around the world. Our resources cover preschool through early college education, including math, biology, chemistry, physics, economics, finance, history, grammar and more. We offer free personalized SAT test prep in partnership with the test developer, the College Board. Khan Academy has been translated into dozens of languages, and 100 million people use our platform worldwide every year. For more information, visit http://www.khanacademy.org, join us on Facebook or follow us on Twitter at @khanacademy. And remember, you can learn anything. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1R… Subscribe to Khan Academy: https://www.youtube.com/subscription_…
May 18 2019

Regulating Monopolies: A History of Electricity Regulation – Learn Liberty


Published on Feb 10, 2012

SUBSCRIBE 190K
Prof. Lynne Kiesling discusses the history of regulating electricity monopolies in America. Conventionally, most people view regulation of monopoly, such as the Sherman Antitrust Act, as one of government’s core responsibilities. Kiesling challenges this notion, and finds that government regulation of monopoly actually stifles innovation and hurts consumers. The American electricity industry was booming in the 1890s, with several small firms competing against one another. Over time, Kiesling argues that the fixed costs began to escalate, increasing the cost of entry into the industry. Put another way, large competitors gained a significant competitive edge over smaller competitors through economies of scale. Eventually, in places like New York and Chicago, Kiesling claims that the competitive process led to one large firm. These monopolies were feared by the public, and led to demands for government regulation. The electricity industry, knowing that regulation was coming, used these demands for regulation as cover to construct legal barriers to entry. Ultimately, the regulations passed by the government reduced competition by granting legal monopoly privileges to powerful firms within a certain geographical territory. In modern times, we are seeing the real cost of these old one-size-fits-all regulations: 1) People aren’t adjusting their energy consumption behaviors. For instance, in peak hours, technological solutions that could smooth electricity consumption are being ignored. 2) The electricity industry doesn’t evolve and account for new types of renewable energy. 3) Innovations have been discouraged. If these archaic regulations were removed, innovations and improvements beneficial to consumers would flourish. For more information, check us out here: http://lrnlbty.co/zcPIQr
May 18 2019

Opportunity Costs: The Parable of the Broken Window – Learn Liberty


Published on Nov 17, 2016

SUBSCRIBE 190K
Some people argue that natural disasters and other acts of destruction create wealth and employment as we repair the damage they’ve caused. Professor Dan Russell explains that this fallacy fails to take into “opportunity costs” into consideration. Whenever we use a resource for one purpose, like fixing a window, we give up the opportunity to use that resource for another purpose. We only know if the use of a resource has created value if we compare it with the the alternate uses we had to forego. forego.

 

May 18 2019

The Unprecedented Equality of the 21st Century


Published on Aug 7, 2017

SUBSCRIBE 190K
The rich get richer, and the poor get … cell phones, cars, and nice TVs? Prof. Mike Munger says we’re actually more equal than ever. Full interview here: https://www.youtube.com/watch?v=-FlQ1… SUBSCRIBE: http://bit.ly/2dUx6wg LEARN MORE: Debate: Is There Too Much Inequality in America? (video): The question of income inequality has become a key issue in contemporary politics. The Institute for Humane Studies asked two professors– Prof. Steve Horwitz, economist at St. Lawrence University, and Prof. Jeffrey Reiman, philosopher at American University- to answer questions about wealth, fairness, and inequality in the United States. This is their debate: https://www.youtube.com/watch?v=p047t… Income Inequality and the Effects of Globalization (video): Income inequality in America is a serious issue. People are worried about a widening gap between the rich and the poor in the United States. But is the global story the same? Professor Tyler Cowen explains how globally, income inequality worldwide is on the decline. https://www.youtube.com/watch?v=ja15p… How to Fight Global Poverty (video): Have you heard the news? The number of people living in abject poverty—defined as living on less than $1.25 per day—has been halved since 1990. How did that happen? Prof. Stephen Davies explains that extreme poverty has been on the decline in part because two of the world’s most populous countries, China and India, have embarked on a path of economic liberalization and development over the past two to three decades. https://www.youtube.com/watch?v=JzmxQ…
May 18 2019

5 Inequality Myths


Published on Oct 2, 2017

SUBSCRIBE 190K
If you really want to understand how the world works today, you need to rethink almost everything you’ve been told about inequality. Prof. Antony Davies explains.
May 17 2019

Yield v Reason


Armstrong Economics Blog/Dow Jones

Re-Posted May 17, 2019 by Martin Armstrong

QUESTION: I see all of these people calling for a major crash of 50%+. With interest rates so low and the dividends on the Dow twice that of interest rates, does anyone look at yield anymore?

PH

ANSWER: I fully agree. The yield on the Dow Jones is 5.34%, which is about double the 10-year rate. Back in 1983, I presented these two charts that show the earnings and book value of the Dow Jones Industrials. The majority were calling for a crash and our computer warned of a Phase Transition and a 600% rise in the Dow. I was blamed for creating the takeover boom, but it was clear that the earnings were at least 5% and the stocks were trading out of a major historical low on price v book value. So earnings do come into the mix

May 16 2019

Capital Controls v Protectionism


Armstrong Economic Blog/Regulation

Re-Posted May 16, 2019 by Martin Armstrong

QUESTION: Marty; You mentioned at the cocktail party in Rome, which was spectacular BTW, that your concern would be capital controls emerging when the euro starts to break hard. Do you have a time frame for that?

WJ

ANSWER: Yes, the view from the cocktail party was spectacular. A bit cold; we could have used that global warming.

We saw Turkey move to entertain that which set off the contagion in emerging markets overnight. While the history books tend to put the blame for the Great Depression at the feet of corporation, as did Galbraith, they never mention the Sovereign Defaults of 1931 or the fact that there were capital controls imposed.

The flight of capital to the dollar was met by imposing capital controls. These capital controls may have solved the flight of capital immediately, but at the cost of a complete collapse in confidence in Europe as a whole. The lesson from 1931 was not that of PROTECTIONISM, which killed trade, but it was the imposition of capital controls that brought international trade to a halt. If capital could not be exported, then commerce could not buy any goods. This was far more drastic than protectionism with tariffs. There just seems to be very questionable analysis applied which was either by true idiots, or more likely, the analysis deliberately hid the actions of government to justify the takeover by Marxist Socialism.

The time frame where we may see governments resort to capital controls may arrive in 2021-2022. We MUST be realistic that capital controls are far worse that trade disputes.

May 14 2019

QE & Its Failure


Armstrong Economics Blog/Central Banks

Re-Posted May 14, 2019 by Martin Armstrong

QUESTION: Dear Martin,
During WEC in Rome I came to understand that the issue with QE is that it did not create any inflation in the USA. On the other hand, as you mentioned the inflation is being calculated in a different way that it used to be in the future. How come then the US does not just change the way of calculating the inflation in a way which would show it’s there? Wouldn’t that be an easier way than to do more QEs?
Thank you,

MK

ANSWER: The primary reason QE fails is because the economy is global. Central banks can no longer manage the economy, for the money does not remain in isolation. Additionally, as I pointed out in Rome, they may have negative interest rates, but that does not pass through. You cannot borrow money from a bank at negative rates.

May 13 2019

The Threat of Protectionism


Armstrong Economics Blog/Regulation

Re-Posted May 13, 2019 by Martin Armstrong

QUESTION: Marty:

I read you every day and I am one of the fortunate people to have a financial advisor that attends your Conference every year in the US.

I am wondering how Airbus will be affected in the future as the Euro further declines.

Thanks, RM

ANSWER: This is one of the aspects that caused the protectionism during the 1930s. As the turmoil in Europe unfolded, capital fled to the dollar pushing it higher. This invoked protectionism also propelled by the decline in commodity prices. The protectionism began with the agricultural sector and then spread to other areas.

As the dollar is pushed higher, we will see protectionism rise again probably 2021-2022. European companies that do not have professional hedging departments will suffer greatly.