Archive - October 21, 2014

1
How Strong is the Bear Case?
2
How Long Can A Bubble Last Before it Ends?
3
50 Shades of 529’s: What College Plan Dominates?
4
What Effect Do Student Loans Have on Your Credit Score?

How Strong is the Bear Case?

The bear case became a lot stronger starting with the 4-19-2014 article in Barron’s that interviewed Rob Arnott where he discussed just how weak real GDP is now and has been for a long time. Then widespread acceptance of the fact of low global growth and lack of credibility of any stimulus plans in the world, including QE, ZIRP further reinforce the bear case.

Just when talk got louder in 2Q2014 of a rate rise suddenly a few months later rates tumbled and the secular stagnation theory became widely accepted. Stocks broke through their 200 DMA in October 10, 2014 …

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How Long Can A Bubble Last Before it Ends?

An interesting article by AEI about the effect of collapsing oil prices on Russia explained that agricultural problems caused by Stalin took 60 years for the Soviet “bubble” to collapse.  Basically the Soviets needed to import grain by selling oil and when oil plummeted in the 1980’s that burst their system’s bubble. They simply ran out of money in November, 1991 and collapsed the next month. In my opinion this shows how a bubble can go on for a very long time, although technically a bubble requires a voluntary market instead of a transaction imposed by the government.

Madoff’s Ponzi …

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50 Shades of 529’s: What College Plan Dominates?

Eric’s Note: Tax benefits are specific to Alabama. Originally published at www.mcclainlovejoy.com: http://wp.me/p31Bd2-w9

Does the thought of a $100,000 college bill for one kid leave you feeling out of control? You can use a 529 college savings plan to save and pay for college in a tax preferential way

529  is tax code section which enables states to setup and offer college savings accounts. They come in two flavors–Prepaid Tuition plans, which we generally suggest you  avoid.

Ccontributory plans or 529 college savings accounts which operate like a 401k/403b retirement plans with contributions dedicated to a single goal: paying …

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What Effect Do Student Loans Have on Your Credit Score?

saving for college

If you thought that a student loan was somehow separate from your credit score, think again. Earlier this year, Yahoo! schooled college students and their families on how student loans can affect credit scores in good and not-so-good ways

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Although this is up for debate, you may have heard that some financial experts assert the idea student loan debt is “good debt” but the fact remains that it is still debt. The best thing you can do is to pay your student loans in a timely fashion. The credit bureaus are watching to see that you pay the …

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