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Tag Archives: wealth

Another Oligarch Preaches to the Peasants – Charlie Munger Says “Prepare for Harder World”

I’m not a fan of Charlie Munger, Warren Buffett’s right hand man. I haven’t been a fan for a long time but this statement back in 2012 really annoyed me.

Such arrogance. I’m sorry Mr. Munger but not all of us get to drink from the Fed’s fire hose of easy money. For many of us gold is a last resort. Not an investment per se, but a hedge against guys like you. Of course you know that and that’s why you said what you said.

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Rents that make the brain bleed in San Francisco: $5,295/month for a one bedroom apartment?

This picture was just too good not to share.

I quite like San Francisco. I have a client out there and for the past 4 years I’ve spent a week in the city (and around it) in June. I wouldn’t say that I’ve left my heart there, or that I could ever imagine living in the place, but it has a certain foggy, pot odored, good beer doused charm. I respect the place even though it has a road, I’m not kidding, named Nancy Pelosi Drive.

But the cost of living there is mind blowing. The city makes life very difficult for landlords to evict anyone and as such forces landlords to inflate rental rates to compensate for the risk. Also the city won’t allow much in the way of new development. There is a huge potential market for new apartments in Frisco but the city fathers (and mothers) would rather preserve the nasty parts of town I guess. And there ARE nasty parts of town. Too many new, young, more or less rich folks moving in might shake up the local politics a bit too much.

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So Biden wants to “emancipate” wealth? OK, let’s take a look at how he got his

Biden is the quintessential political Cheshire cat. (The Washington DC subspecies.)  The guy can smile through anything. Probably a good thing to be able to do if one is Vice President Biden.

“Just keep smiling.

Did I just cozy up to the nominee’s wife on stage? Why did I do that? Oh man. Damn, why can’t I remember to keep it back stage!

Just keep smiling.”

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‘The narrowing of opportunity in modern America’ (And the rise of the “mandarin” class)

I don’t say this very often, but I highly encourage everyone reading this post to read the attached article. It offers a great window into a world in which I spend considerable time, and it is spot on. If one wants to understand what’s going on in our government and in our economy this piece will offer some valuable perspective. (The article is 2 years old, but in this case it doesn’t matter.)

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2015 A year of transition? Part 1

Most years are extensions of the year or years before. They are pieces of an era. Each year has its own flavor for sure but some years have a similar feel. Sometimes however things shift, and I think 2015 may be one of those “shifting years.”

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If you had assets before 2008 you’re probably doing fairly well, If you didn’t, well sorry

The great disconnect continues. Those who are tapped into the (crony) financialized system have seen their stocks and bonds do well as the market has ridden a Federal Reserve created bubble. Those who do not have assets, or only real estate assets, (unless they have nice arable farmland) have fallen behind. It’s a case of the rich getting richer and the poor getting poorer, but the situation has been exacerbated by the central bank experiments of the last 6 years.

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The Man Behind the Hong Kong Miracle

Technically Hong Kong is now part of communist China, yet today it is perhaps the freest and one of the wealthiest places on Earth. One man, Sir John James Cowperthwaite, had everything to do with this.

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Argentina and 10 More Countries Near Bankruptcy

I remember back during the the big Argentine default of 2001 I was on an overseas real estate website and I saw a piece of land which was literally the size of Delaware for sale for $1,000,000 US. I remember thinking that even if the land was deep in the barren steppe of Tierra del Fuego it still had to be a deal at that price. There would have to be minerals under there of some sort. All I had to do was find 1 million dollars.

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The Economist develops a crony capitalism index (good attempt but falls short)

In fairness The Economist readily identifies its shortcomings with regard to the index. They explain that they are missing huge pieces of data, can’t exactly define what industries are “crony heavy” and which are not in a particular country, and miss the largest amount of cronies because the magazine focuses on billionaires. (The vast majority of cronies, like everyone else aren’t billionaires.)

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