Four Authors You Absolutely Must Read Before The Super Crash

Though the mills of God grind slowly; Yet they grind exceeding small;
Though with patience He stands waiting, With exactness grinds He all.

    – Henry Wadsworth Longfellow, “Retribution”

The 2008 disaster was a long time in the making. Every time we have a crash, it is because we stubbornly entertained the wrong ideas for many years beforehand.

The seeds of destruction in 2008 were primarily ideological; they grew out of widely accepted but flawed ways of thinking about capital, economic growth, and financial regulation. Instead of basing economic growth on an honest free market model that privileges concepts such as equity, transparency, production, and prudent and limited regulation, those in positions of influence chose the path of debt, opacity, speculation, and wholesale deregulation.

There were two problems with this approach. First, the United States does not have a genuine free market; government regulation and crony capitalism play an enormous role in distorting incentives and interfering with market processes. Second, this regime is based on the radical error of pretending that markets are efficient and investors are rational when precisely the opposite is true.

A capitalist system inherently prone to booms and busts became even more susceptible to disequilibrium. In order to understand what happened and in order to rebuild a more resilient system, we must dig deeply into basic economic principles and reevaluate them.

And in order to do that, you absolutely must have a grasp of these four writers…

To continue reading click here.


Q3 Update: You’re Up 125% On This Long Play

While reading through the survey responses many of you have sent in, I’ve been happy to hear how many of you have made money on our “big shorts” this year, as well as on our metals plays. That reminded me: it’s time for a quick check-in on our recommendations from the beginning of the year.

Interestingly, my longs are actually doing better than my shorts right now! (And you thought I was a permabear.)

In fact, two of our long plays are up 124% and 125% respectively since December 2015.

If you’ve been following along for awhile, you’ll know right away which ones those are. Congratulations if you own them. Drop a line in the comments to let us know how much you made.

By the way, a couple of our favorite short plays have now dipped 43% and 49%.

Here’s the full rundown…

To continue reading click here.