Buy Low, Sell High: The Worst Financial Advice of All Time

As someone who’s given a number of talks on personal finance and managing your investments, there’s one piece of advice that I keep hearing from people over and over again. “Buy low, sell high”, they usually whisper to me in a sagely tone, as though they have discovered some profound truth that will unlock investment … Continue reading Buy Low, Sell High: The Worst Financial Advice of All Time

We Need to Break Up Banks to Prevent the Next Financial Meltdown

In a previous article, we discussed the problem with banks guaranteeing fixed deposits while actually investing the money into speculative, long-term ventures, and how such an arrangement naturally leads to bank runs. There is a second problem in this scenario as well; one that is so commonplace that most people do not even stop to … Continue reading We Need to Break Up Banks to Prevent the Next Financial Meltdown

We Can Prevent Bank Runs by Marking to Market

The story of financial crises is an old and oft-repeated one. Bank runs have been occurring since the time of the renaissance, were a key factor in the great depression, and its variants have necessitated billions of dollars in bailouts in the past decade after the subprime crisis. Is this really inevitable? Is this really … Continue reading We Can Prevent Bank Runs by Marking to Market