Tag Archives: financial myth busting

Dawn J. Bennett & Joran Goodman Discuss President Trump

Dawn J. Bennett, host of the nationally syndicated radio show
Financial Myth Busting, recently interviewed Jordan Goodman on her show. Goodman is a former journalist at Money, the leading personal finance magazine, as well as the host of Money Answers, a weekly national radio show. Goodman has also authored 14 books, with The Ultimate Guide to Student Loans being the most recent.

On Financial Myth Busting, Bennett and Goodman discuss President Trump. Bennett notes that Trump’s Inaugural Address was provocative. In it he says his presidency will be a real break from the past eight years.

Goodman says the address was much like his campaign speeches. “It did not have the usual soaring rhetoric that people are used to in these kinds of things,” he says. “It was ‘America first. Hire American. Buy American. Forgotten people.’ It was very much like his campaign speeches, and I think he’s going to continue the same way, whether people like it or not.”

Goodman says he is hopeful about Trump’s presidency. He explains that Trump is a businessman and is going to run the country like a business, which has certain advantages.

“It’s the government, different from business, but getting regulations down… we’re vastly over-regulated,” Goodman says. “The industry that you’re in, the financial services industry, this fiduciary rule that’s coming is a good example of massive over-regulation for a problem that didn’t exist that much, and it’s going to hurt a lot of people, both financial advisers and customers. I think that could be rolled back or eliminated.”

He continues, “I think in the energy industry, we have a huge amount of regulations that are preventing drilling, environmental regulations and so on. I could go through a whole series of things. With Obamacare, 20 million more people have gotten insurance than had it before, but at a huge cost. People can’t afford these premiums, which on average went up 25 percent on January 1st. Arizona, 116 percent. Many states over 50 percent. That’s because of regulations. So, if you get regulations down, you’re going to free up what John Meynard Keynes, the economist, used to call the ‘animal spirit.’ I think you’re already seeing that, certainly, in the stock market, so that’s why I’m hopeful.”

Goodman says what he is most concerned with Trump’s presidency, though, is trade wars, particularly with Mexico, Japan, and China.

“He [Trump] has very strong rhetoric, and maybe that’s a bargaining ploy, and maybe it will work,” explains Goodman. “Maybe we’ll get better deals, maybe our trade deficit will come down with these countries, but I think the opposite could happen. If we don’t get a deal we want, and he does put a 35 percent tariff on them, they’re clearly going to retaliate and make it hard for American goods to go there as well. That’s my biggest economic concern. Then politically, I’m concerned about wars. In the South China Sea, or if we move the embassy in Tel Aviv to Jerusalem and that causes a Middle East war. Those are the kind of things I’m most concerned about on the down side. He didn’t get elected in China, so the Chinese aren’t his constituency. So that’s what I’m most concerned about is getting into trade wars.”

To view the complete discussion between Dawn J. Bennett and Jordan Goodman, click here.

Dawn J. Bennett, host of the nationally syndicated radio show Financial Myth Busting, recently interviewed Jordan Goodman on her show. Goodman is a former journalist at Money, the leading personal finance magazine, as well as the host of Money Answers, a weekly national radio show. Goodman has also authored 14 books, with The Ultimate Guide to Student Loans being the most recent.

On Financial Myth Busting, Bennett and Goodman discuss President Trump. Bennett notes that Trump’s Inaugural Address was provocative. In it he says his presidency will be a real break from the past eight years.

Goodman says the address was much like his campaign speeches. “It did not have the usual soaring rhetoric that people are used to in these kinds of things,” he says. “It was ‘America first. Hire American. Buy American. Forgotten people.’ It was very much like his campaign speeches, and I think he’s going to continue the same way, whether people like it or not.”

Goodman says he is hopeful about Trump’s presidency. He explains that Trump is a businessman and is going to run the country like a business, which has certain advantages.

“It’s the government, different from business, but getting regulations down… we’re vastly over-regulated,” Goodman says. “The industry that you’re in, the financial services industry, this fiduciary rule that’s coming is a good example of massive over-regulation for a problem that didn’t exist that much, and it’s going to hurt a lot of people, both financial advisers and customers. I think that could be rolled back or eliminated.”

He continues, “I think in the energy industry, we have a huge amount of regulations that are preventing drilling, environmental regulations and so on. I could go through a whole series of things. With Obamacare, 20 million more people have gotten insurance than had it before, but at a huge cost. People can’t afford these premiums, which on average went up 25 percent on January 1st. Arizona, 116 percent. Many states over 50 percent. That’s because of regulations. So, if you get regulations down, you’re going to free up what John Meynard Keynes, the economist, used to call the ‘animal spirit.’ I think you’re already seeing that, certainly, in the stock market, so that’s why I’m hopeful.”

Goodman says what he is most concerned with Trump’s presidency, though, is trade wars, particularly with Mexico, Japan and China.

“He [Trump] has very strong rhetoric, and maybe that’s a bargaining ploy, and maybe it will work,” explains Goodman. “Maybe we’ll get better deals, maybe our trade deficit will come down with these countries, but I think the opposite could happen. If we don’t get a deal we want, and he does put a 35 percent tariff on them, they’re clearly going to retaliate and make it hard for American goods to go there as well. That’s my biggest economic concern. Then politically, I’m concerned about wars. In the South China Sea, or if we move the embassy in Tel Aviv to Jerusalem and that causes a Middle East war. Those are the kind of things I’m most concerned about on the down side. He didn’t get elected in China, so the Chinese aren’t his constituency. So that’s what I’m most concerned about is getting into trade wars.”

To view the complete discussion between Dawn J. Bennett and Jordan Goodman, click here.

Dawn J. Bennett Interviews Chris Whalen, Investment Banker and Author

Dawn J. Bennett, a certified management investment analyst and founder and CEO of Bennett Group Financial Services, recently interviewed Chris Whalen on her radio show Financial Myth Busting with Dawn J. Bennett. Chris Whalen is a senior managing director and head of research at Kroll Bond Rating Agency and has previously worked for several prominent financial firms, including Bear Stearns, Prudential Security and Tangent Capital Partners. Whalen is also the author of Inflated: How Money and Debt Built the American Dream (2011) and Financial Stability: Confidence and the Wealth of Nations (2014).

On Financial Myth Busting, Bennett and Whalen discuss what Donald Trump’s surprising victory means for the markets through the end of the year and how his views on monetary policy will affect the larger global economy.

With Trump set to take over the White House, all eyes are on the Federal Reserve, which avoided raising rates before the election. Bennett says she thinks the expectation is that Yellen now has no reason not to raise rates, and asks Whalen whether he thinks Yellen is likely to raise rates.

“Well, I think first and foremost you’ve got to look at the bond market,” Whalen said. “What the bond market tells you that since June when yield for the 10-year really reached their lows, yields have almost doubled. So the 10-year is headed to about 2.2 percent. I think it’s going to go higher. And that has to catch up with the market, Dawn, it’s what it comes down to. Mortgage rates are going up and bondage and linkage are coming back.”

He continued, “We had almost 10 years of kind of managed stability care of the central banks and now I think that people are looking at Trump’s spending program, cutting taxes, various other things and also I think the fact that politically the Fed cannot continue to monetize debt the way it was during quantitative easing when they were buying bonds and they basically got to hold them to maturity. I think that all of that is now putting the market back into the hands of investors who have been on the sidelines in terms of the direction of interest rates for years. I think you’re right. They are going to have to raise rates just to catch up with where the market is.”

Bennett says she thinks the country is in a jam, as Trump will have to contend with Obama’s massive debt burden that has built up over his eight-year term. Trump has to do this at a time when we are at this epic point of accommodative monetary policy. She asks Whalen what he thinks will happen when rates go up.

“Well, you know, the equity markets for the past few years have been substituting debt for equity and I think you’re going to see a lot of big corporate issuers slowly let that debt run off and they’re going to have to issue more stock,” Whalen said. “Now, the markets are hungry for stock. You haven’t had much in the way of quality issuance going back to the crisis. However, it’s going to put pressure on stock prices simply because IBM and many, many other big industrial companies—even companies like Apple, for example—were out buying back shares and issuing debt. That’s going to reverse itself. And I don’t see that as a catastrophe.”

He continued, “I think you’ve got to just be cognizant of the fact that bond yields are going to go up. The pricing on your portfolio may suffer as a result but hopefully you can sit with it, and at the same time I think you’re going to see a lot of companies desperately trying to rebalance their balance sheets in terms of the debt/equity mix. It got very lopsided over the last few years.”

View the full interview here, and catch Financial Myth Busting every Sunday at 10:00 a.m. on WMAL AM 630.

Is Another Global Depression on the Horizon?

Dawn J. Bennett, founder and CEO of Bennett Group Financial Services, recently interviewed Richard Duncan, an author and financial analyst, on her talk show Financial Myth Busting with Dawn J. Bennett. Duncan specializes in fiat currencies and macro policy and has written many books, including The Breakdown of the Paper Money Economy, The Corruption of Capitalism, and the Dollar Crisis: Causes, Consequences, Cures.

In his video newsletter “Macro Watch”, Duncan recently reported that the global economy is in $300 trillion in debt, after the global economy moved to a debt fueled-growth strategy over the last three decades. Duncan explains this statement further during his interview with Dawn J. Bennett.

According to Duncan, the economic system has changed in fundamental ways from 1968 and 1971, when dollars stopped being back by gold. The economic system changed from capitalism to what he calls “creditism”. How this economic system operated is businessmen would invest; some would make a profit, save the profit and accumulate capital, and repeat the process. The system was driven by investment and saving. Today, the system works in an entirely different, explained Duncan.

“Our system is driven by credit creation, and consumption, and more credit creation, and more consumption,” he said. “That has generated fabulous economic growth, at least up until 2008. It ushered in the age of globalization, and it created the prosperity that we’ve enjoyed all of our lives, really up until 2008. The problem with that is that in 2008 we reached the point where the private sector, the average Americans, just couldn’t continue taking on any more debt. At that point they started defaulting, and this global credit bubble that resulted from creditism started to implode.”

Duncan is predicting this will lead to economic collapse. According to Duncan, the U.S. government has been managing the U.S. economy at least since World War II, so for about 76 years now, and have not been doing a very good job.

“We’ve reached the point now where this creditism can’t continue to create economic growth because the private sector is too heavily in debt,” he said. “If the government sector doesn’t continue borrowing and spending to drive the economy then there is a very real danger that we will collapse into a catastrophic global great depression again.”

For Dawn Bennett’s complete interview with Richard Duncan, click here.