February 5, 2012

Note to Washington: You Cannot Separate Human Psychology from Economics

Predictably Irrational Book

The Huffington Post is talking about Obama's handling of the economy and the world view of his economic advisers now that Larry Summers is resigning. Those policies -- the bailout of Detroit automakers, an $814 billion stimulus package, subsequent programs under TARP, Cash for Clunkers and the administration's unlimited backstop of Fannie Mae and Freddie Mac -- arguably saved an economy that many considered to be on the verge of collapse. But while the recession officially ended last year, … [Read more...]

Men Unlikely to Marry Women with Large Debts

Women in debt are less likely to find a mate

There was an article three weeks ago in The New York Times that began with the following paragraph: Nobody likes unpleasant surprises, but when Allison Brooke Eastman's fiancé found out four months ago just how high her student loan debt was, he had a particularly strong reaction: he broke off the engagement within three days. [snip] (The story goes on to say that Allison owed more than $100,000 due to the cost of her education.) When, exactly, are you supposed to reveal a debt of this … [Read more...]

If You Have Credit Card Debt, The Credit Card Accountability Responsibility and Disclosure Act of 2009 Should Make Your Life Better

Credit Card Debt Accountability Act Bill of Rights

The Credit Card Accountability Responsibility and Disclosure Act of 2009, or the credit card reform act as it is called in the news, was passed more than a year ago.  This is a case of the middle class getting a huge break that most of them won't even realize but, in the future, it will save them massive amounts of money if they have any credit card debt. The bill was originally introduced the year prior as the Credit Cardholders' Bill of Rights by Representative Carolyn Maloney, who is the … [Read more...]

What the Hell Is Up with the National Poverty Figures?!

Last week, the Census Bureau reported that an estimated 1 out of 7 Americans is now living in poverty, which is the same level we had in 1994.  I started digging around the figures and found that the government definition of poverty for a two-adult, two child household (4 people) is $22,050 in annual income. How the hell can two working adults - or even one working adult - earn less than that in a year?! I mean, I have one relative who was pulling down roughly $20,000 to $30,000 a year in … [Read more...]

At What Point Does Your Life Stop Being Mommy and Daddy’s Fault?

Over at the Investing for Beginners site, I just published a blog explaining that the best investment is in yourself, as I have repeatedly said. This came as a result of a Wall Street Journal article that explained unemployment levels for college graduates, which is only 25% of the population, is still incredibly low. In fact, the unemployment level for college graduates is half that of the general population. What angers me is the guy who didn't go to college, when asked about his reason, … [Read more...]

The Best Advice I Ever Received

Joshua Kennon right after college

The best advice I ever received came when my parents dropped me off at college.  As they were getting in the car, my dad looked at me and said, "Your mom and I have done everything we could for you.  We fed you, we clothed you and you have a high school education.  From now on, it is your responsibility to make your dreams come true. We can't do it for you, and no one else can either.  If you want it, you have to do it on your own." The message?  The cavalry isn't coming.  Do you … [Read more...]

My Birthday In Pictures

Kelsey, Tyler and Ellie at Birthday Dinner

The birthday festivities began around midnight.  Most of my family was over visiting going over some details of something we needed to discuss.  Then, later that night (er ... morning) I got an email from Molly, who sent me a charitable gift card to Kiva, a wonderful organization. I woke up to one of my most favorite breakfasts in the world - a plain, untoasted bagel with cream cheese and strong black coffee - and then my mom stopped by with cupcakes.  Aaron, my youngest sister and I … [Read more...]

A Hedge Fund vs. a Mutual Fund

Joshua Kennon Mutual Fund vs. Hedge Fund

In the next 2-5 years, depending upon what happens at the private businesses we own, I am seriously considering launching either a hedge fund or a mutual fund.  Both have significant advantages and disadvantages. A Hedge Fund The Pros: With a hedge fund, I could do almost anything I can do now in private business.  This includes borrowing money to acquire real estate or whole companies.  Say I raised $100 million in assets and we had a good 15% year.  With a "standard" hedge fund … [Read more...]

Why the Chinese Economy Is Destined to Be Bigger than the Economy of the United States

It Is Morning in China, to Borrow a Phrase

In Surprising Facts About America's Population, I pointed out that the top 25% of people in China - the gifted students who out-test 3 out of 4 of their classmates - exceeds the entire population of the United States. This raised some concerns about my enthusiasm for the rise of China.  I thought it would be important to clarify where I and explain how this issue affects you and your family. The Economic Rise of China vs. The Political Rise of China There are two distinct issues that must … [Read more...]

Educational Crisis In Black Male Population Resulting in Staggering 25% to 40% Unemployment Rate

Schott Report on Black Male Education Rates

The Good News: African American women are gaining in net worth, income, high school graduation rates, college graduation rates, and seats in boardrooms at powerful companies throughout the world.  They are going from glory to glory, success to success. The Bad News: African American men have unemployment rates as high as 40% in some areas, have incredibly low graduation rates, which results in lower income and lifetime achievement. The Question: Why?  How do we figure this growing … [Read more...]