Aldous Huxley’s forecast for our society

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Recently I reread “A Brave New World” by Aldous Huxley. It is my favorite book, but not because it is enjoyable to read. In fact, it is quite depressing. Any novel that ends with a sentence like the following, describing the motion of one of the main character's bodies after he hanged himself, is not going to be a very fun read.

“Slowly, very slowly, like two unhurried compass needles, the feet turned towards the right; north, north-east, east, south-east, south, south-south-west; then paused, and after a few seconds, turned as unhurriedly back towards the left. South-south west, south-south-east, east…”

Here is why we aren't financially better off than our grandparents

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A little while back we explored why life feels so expensive, and so many of us are struggling to get by. One of the reasons for this, it seems, is that wage growth (adjusted for inflation) has been non-existent for the last half-century.

A case study on one of the world’s hottest real estate markets

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The Canadian housing market is HOT, regardless of the ongoing pandemic. So hot that it was recently ranked as the third biggest housing bubble in the world. House prices have risen by over 22% in the last year. This is despite national unemployment rates still hovering over 8%, which is the highest that it reached during the Great Recession.

If you thought there was a lot of hype around GameStop and cryptocurrencies, you haven’t seen anything yet. There are countless stories about houses receiving dozens of offers and selling for hundreds of thousands over the asking price. This, however, is…

You probably won’t like the answer

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People make millions of dollars working in finance. There is no question about that, but have you considered how they make all of that money?

It is commonly thought that professional investors must be brilliant. After all, they make money by using their intellect to accurately forecast the evolution of financial markets, don’t they? This belief leads everyday people to think that they can make big profits if they study the markets hard enough and come up with similar investment strategies to the professionals.

This article explains how professionals really make their money, and why no amount of market research…

Corporate interests don’t align with those of the people

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Most of my time on Medium has been spent writing about the economic problems that we currently face. Recently, I realized that the root cause of all of them is the same — a misalignment of incentives between certain companies/industries and everyday people — that is the topic of this article.

Berkshire Hathaway hasn’t performed better than the market in a long time. Warren Buffet and his sidekick Charlie Munger seem to have lost their edge when it comes to investing, however, they still have many interesting insights on what’s happening in the world. …

Elon Musk proved that there isn't one

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It’s hard to make sense of everything going on in the world of finance. It’s an industry filled with complicated terminology conjured up to make those using it sound smart and important. Adding cryptocurrencies into the mix makes things that much more confusing. Are cryptos a fad, or a real alternative investment you should be taking seriously? Let’s take a closer look.

Bitcoin was meant to help us become less reliant on banks

Processing transactions was very simple back when cash was the only way to make purchases. If we wanted to buy something we would hand our money over to the seller and they would give us change. …

It depends who you ask

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The US cannot go bankrupt.

Yes, you read that correctly. In this article, I will attempt to explain why this is the case, and how it could change the way we think about federal deficits.

China owns $1.1 trillion of US treasury bonds. This means that the US federal government owes China $1.1 trillion US dollars which it will pay back with interest over time. Every so often we see stress-inducing headlines describing how this is all part of China’s devious plan to take over the world. One day, it is argued, China will decide to stop “funding” the US…

What that means, and how it’s possible

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The Bank of Canada (BoC) recently set a new record, it now owns over 40 percent of the bonds which have been issued by the Government of Canada.

This is an astonishingly high proportion. For the last few decades, the BoC has typically owned somewhere around 5–15% of outstanding Government of Canada bonds. Even during times of immense financial stress, like during the 2008 recession, things were nowhere near this extreme. The below chart shows how far of a departure from the norm this is.

Understanding the past to try and make sense of the future

The Big Short is a hilarious yet highly informative movie. I would highly suggest watching it if you haven’t seen it yet. It does a great job at explaining the convoluted network of events that resulted in the 2008 economic collapse, while somehow keeping you entertained. In this article, we will take a closer look at some of the themes that were explored in the movie.

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Shady things were going on in the financial industry leading up to the crisis

Low-grade mortgages were being packaged together into securities that, somehow, were determined to be exceptionally safe investments by rating agencies. Banks and investment managers loaded up on these securities, while at the same time…

What is good for investors might not be good for the economy

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The Atlantic recently put out a compelling piece discussing investment trends. The beginning of the article describes the rise of passive investing from an investor's point of view; better performance with lower fees. The latter half is where I think it gets particularly interesting, discussing the effects of passive investing on the economy.

The name of the article, “Could Index Funds Be ‘Worse Than Marxism’?”, suggests that all might not be rosy when it comes to passive investing. To better understand why index funds might be worse than Marxism, we’ll need some background information.

What is Marxism?

Karl Marx’s philosophy was motivated by…

Kareem Kudus

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