Creative Capital Archives - Page 17 of 20

The core problems with central bankers, which have led directly to the catastrophes of the Tech Bust, the Financial Crisis, the pathetically weak recovery from the Great Recession of 2008-09, and the near-destruction of the asset management business, are: groupthink, arising out of the fact that every central banker in the world went to the …

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Creative Capital

The Fed and Friends

by Greg Curtis

We are talking about the traumatizing events that rocked the asset management business, to say nothing of the world, beginning in 2008, a calamity brought to us courtesy of the world’s central bankers. I’ve discussed elsewhere the bizarre strategies of the U.S. Fed and its various doppelgängen at other central banks around the world. But …

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Investing in a Rigged Market

by Greg Curtis

The asset management business as we know it today got started in the mid-19th century. The impetus for investment management firms separate from banks arose out of the awkward fact that banks often fail, while asset management firms hardly ever do. According to Nigel Edward Morecroft, who has studied the history of asset management, firms …

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To Experts: a Few Words of Wisdom

by Greg Curtis

“I would rather be governed by the first 2,000 names in the Boston phone book than by the Harvard faculty.” –William F. Buckley I began this series of posts by focusing on the annoyance ordinary people experience when they are constantly being told what to do by an ever-proliferating series of experts in almost every field …

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Back to the Middle Ages: A Century of “Expertism” in America

by Greg Curtis

The vast Federal regulatory apparatus that we know and love today got its start early in the 20th century under President Woodrow Wilson. Appropriately, Wilson was the only President in U.S. history to earn a PhD–he’d been president of Princeton University. At that time the world still believed that Great Britain was the globe’s most powerful …

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It was a Good Idea in Theory…

by Greg Curtis

Back in 1986 I launched a wealth management firm I conceitedly called “Greycourt”—it’s an anagram for my name. The firm met with modest success and in 1988 I incorporated it. I was probably the most hopeless, bumbling entrepreneur in the history of private enterprise, but somehow I’ve been with Greycourt for 31 years. For the …

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Democracy, Populism, and the Tyranny of the Experts, Part XI

by Greg Curtis

As far as reigning in annoying experts is concerned, Congress and the judiciary are a bust, albeit with a few tiny bright spots on the distant horizon, twinkling away like dying lighthouses on a storm-tossed sea. But what about the Presidency? As noted earlier in this series, Donald Trump was the candidate of people who …

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When Experts Judge the Experts

by Greg Curtis

In my last post we examined the (pathetic) attempts of Congress to control the tyranny of the experts. Fortunately, Congress isn’t the only weapon in the battle against expert oppression, even at the Federal level. Let’s take a look at the judiciary. But before we do, let’s pause to savor the delicious irony of what …

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Democracy, Populism, and the Tyranny of the Experts, Part IX

by Greg Curtis

“The complexity of modern life has steadily whittled away the functions the ordinary citizen can intelligently and comprehendingly perform for himself…When he sits down to breakfast and looks at his morning paper, he reads about a whole range of vital and intricate issues and acknowledges…that he has not acquired the competence to judge most of …

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Democracy, Populism, and the Tyranny of the Experts, Part VIII

by Greg Curtis

Freedom is better, even when it’s worse. We might think about experts the way we think about stop signs (bear with me on this…) To understand the expert-stop sign analogy let’s begin with Arthur C. Brooks, who has written (in “Foreign Affairs” and elsewhere) about what he calls “the dignity deficit,” which he believes cost Mrs. Clinton …

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Democracy, Populism, and the Tyranny of the Experts, Part VII

by Greg Curtis

Viewed through the lens of “the tyranny of the experts,” it’s easy to see that in the last election Hillary Clinton was the candidate of the experts, while Donald Trump was the candidate of people who were tired of being tyrannized by them. Clinton is an expert herself—she’s a lawyer who practiced with The Rose …

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Democracy, Populism, and the Tyranny of the Experts, Part VI

by Greg Curtis

Populism is an unsettling phenomenon in part because we don’t know where it will end. And we don’t know where it will end because populism isn’t itself a governing idea—it’s a response to the perceived failure of other governing ideas. On the other hand, looking back through history we can notice—as a matter of observation, …

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Democracy, Populism, and the Tyranny of the Experts, Part V

by Greg Curtis

If we wanted to—well, we do want to—we could go back 2,500 years and identify the exact point when human civilization went off the rails on the subject of experts. It’s 399 B.C. and a fellow named Socrates is languishing in an Athenian prison, awaiting execution. He’s been convicted (albeit by a narrow vote of the citizens …

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Democracy, Populism, and the Tyranny of the Experts, Part IV

by Greg Curtis

Not that long ago—say, when my parents were starting out in married life—building a sound investment portfolio was a piece of cake. You bought some Blue Chip stocks and some Triple A bonds and you were done. And even having to worry about building a portfolio was a very rare experience. The vast majority of …

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Democracy, Populism, and the Tyranny of the Experts, Part III

by Greg Curtis

The first thing we do, let’s kill all the lawyers. (Shakespeare, Henry VI, Part II, identifying the first step in building a better society) When I was growing up, my family not only never consulted a lawyer, I never laid eyes on one. Lawyers were completely irrelevant to the lives of almost everyone. Then, suddenly, I was …

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Democracy, Populism, and the Tyranny of the Experts, Part II

by Greg Curtis

I launched this series of posts by taking a brief tour of a regrettable society called Acirema, in which a race of experts called Masters, though a tiny minority, lorded it over a sub-race of non-experts called Slaves. We’re back, now, in America and wondering if Acerima society might offer a moral for us. Not …

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Democracy, Populism, and the Tyranny of the Experts

by Greg Curtis

Is it better never to put your ideas in writing and thus be thought a vacuous fool, or is it better to launch your own blog and remove all doubt? To launch this series of posts with such a mouthful of a title—Democracy, Populism, and the Tyranny of the Experts (hereinafter DP&TE)—we’re going to engage in one …

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Cash is King

by Greg Curtis

Since the end of the Financial Crisis eight long years ago, a notion has settled across the land that “cash is trash.” This is the bunkmate of the “TINA” principle: There Is No Alternative to owning equities. It’s easy to understand how these ideas took root. Since the Bear Market ended in early 2009 stocks …

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Explaining Donald Trump, the Conclusion

by Greg Curtis

I have met the enemy, and he is me. (What Trump, channeling Pogo, should be saying to himself every morning.) Can Trump turn it around? No one knows, of course, but if my only slightly tongue-in-cheek analysis is correct, the best hope for Trump is that his dismal experience to date will prove to be a …

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Explaining Donald Trump, Part V

by Greg Curtis

Donald Trump has been such a disruptive agent during his first few months as President that it’s easy to dismiss him as hopelessly incompetent. That would be a mistake: one common way MEPs (mega-entrepreneurial personalities) prevail is because other people write them off as unhinged lunatics. I’ll get to the lunatic aspect of our MEP …

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Explaining Donald Trump, Part IV

by Greg Curtis

There is so much emotionalism about Donald Trump—both pro and con—that I’m trying to explain his behavior by looking at issues outside the man himself. I’m looking at how people behave who have very similar personality types (i. e., mega entrepreneurial personalities, or MEPs) and at how people are likely to fare in the Presidency …

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Explaining Donald Trump, Part III

by Greg Curtis

I’m claiming to be able to explain Donald Trump—and predict his actions as President—by reference to only two of his characteristics. The first is that he’s what I’ve called a Mega Entrepreneurial Personality, a trait he shares with an infinitesimally small group of Americans. The second trait is something Trump shares with almost all of …

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