Highlights from September — Third Wave Finance on Twitter

Highlights from September — Third Wave Finance on Twitter

  • Visual representation of the central bank policy that has led to the third instance of the 21st century where long-term returns for traditional asset classes have been reduced — detailed in the Third Wave Finance article entitled The Orchestration of Debt-Based Expansions

  • Visual of the size of U.S. debt (see the Third Wave Finance article entitled Debt Levels for a comparison of total-debt-to-GDP for various economies and for a discussion of implications)

  • 7-Year Asset Class Real Return Expectations from Grantham, Mayo, Van Otterloo

  • Visualization of several overarching financial, investment, & economic issues facing the world

  • Video detailing the deeper economic and monetary policy issues facing the world

  • List of the symptoms of an over-indebted economy — i.e. an economy that has a high level of unproductive debt, defined by Hyman Minsky as debt that does not create an income stream to repay the principal and the interest on the debt

  • Quote distinguishing deflation from depression

  • Comment detailing current Fed policy

  • Comment and video on the importance of historical study

  • Comment and video on economic growth, low interest rates, and implications on saving

  • Visual of the complexity of the stock market when compared to the futures market; the complexity is concerning when compared with a quote from Charles Kindleberger’s work Mania, Panics, and Crashes — “In boom, entropy in regulation and supervision builds up danger spots that burst into view when the boom levels off.”

  • Quote applicable to the importance of avoiding groupthink and models that are inconsistent with actual outcomes, and instead focusing on openness and real implications — a necessary change for current monetary policy and economic thought (see the Third Wave Finance articles entitled Current Textbooks Are Not Equipped to Deal with Our Economic WorldThe Many Schools of Economics — Is there a “right” version?, and The Questionable State—and Abusive Use—of Economics)