http://blogmybrain.com This blog is the blueprint of the intellectual development of my brain Sun, 14 Mar 2010 04:08:17 +0000 http://backend.userland.com/rss092 en Heading to Bankruptcy: Consumption greater than income, leading to debt-driven consumption. Safe growth:  Less consumption than income, and invest the savings. Risky growth:  Borrow to invest, betting that the investment return is greater than the cost of servicing the debt. Safe haven:  Store savings in sound money. Running your personal finance is in many ... http://blogmybrain.com/2010/03/14/a-guide-to-personal-or-national-finances/ The U.S. economy is losing its global competitiveness due to the following policy errors: 1.  High Taxes and Labor Unions are making manufacturing uncompetitive in the global market, resulting in a shift of the economy towards more driven by service & consumption.   Engineering jobs are now replaced with sales and ... http://blogmybrain.com/2010/03/04/tolls-on-the-us-economy/ Milton Friedman had pointed out that socialism and dictatorship is the natural tendency of human societies.  He had also observed that free market capitalism and the subsequent prosperity is the exception rather than the norm in human history. In fact, we can generalize the above conclusions to all human organization.   ... http://blogmybrain.com/2010/03/04/milton-friedman-and-big-companies/ Someone in linkedin asked how human behavior contribute to financial bubbles and how to manage such risk.  Here is my answer: If you think of a bubble being the consequence of inefficiencies in the market, then we can examine how the two premise of efficient market theory can be broken: 1. Misinformation. ... http://blogmybrain.com/2009/10/29/financial-bubbles-human-behavior-risk-management/ The recent stock market boom is a symptom of excess liquidity caused by government policies. The liquidity is supposed to be injected into the real economy, but instead it is causing asset bubbles. The premise of the stock market rise is a falling dollar. Recently sentiment of the dollar has ... http://blogmybrain.com/2009/10/29/stock-market-dollar/