If you were to listen to your nightly business newscast, you would think that the whole world was invested in derivatives. What exactly are they and how do they work? The short answer is that derivatives are contracts that are bought and sold against an item that has a concrete known value, but is not […]
We get a lot of questions around here asking us to define the terms heard on various news reports and business shows. This is certainly one of the more common requests, What is a Hedge Fund? Simply stated, a hedge fund is no more than an investment vehicle that is designed to be highly risky, […]
In the 1970’s we found ourselves in long gas lines, with oil product prices soaring to the sky. We had hit an oil production peak for the United States. Never since have we managed to sqeak as much oil from American soil as we did back then. Even with advancing technooligy, old wells go dry […]
When you put your money into a bank, How is it used, what do banks do with it? What can they do with it? Thanks to the magic of Fractional Reserve Banking the answer is…almost anything that they want. What exactly is Fractional Reserve Banking? Well, the short answer is keeping only a fraction of […]
In the world of Economics, one thing is certain, Gold is Money. So how about that piece of paper you have in your wallet, that one that we all call “Money”, is it really a valid Currency? The answer to this question leads us to one of the best kept secrets in the world of […]
This is one of my favorite questions in the entire world of economics. What makes it my favorite is not the answer, but peoples reaction to the answer, or sometimes, the questions. You see, if the person I am talking about know the answer it always leads into a long and hot debate along with […]
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