• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

The Fed, the Market, and the Wisdom of Crowds

By Len Penzo

crowdThose of you who have been reading my Black Coffee columns for awhile are aware of my repeated lamentations that, thanks to the manipulation of interest rates by the Fed and interventions and bail-outs by our federal government — which inhibit capitalism’s ability to eliminate dangerous market inefficiencies — price discovery is officially dead.

Instead of a free market, we’re stuck with a quasi-command economy led by a politburo at the Fed consisting of a handful of “economists” and academics who, after poring over reams of dubious government data, continually manipulate interest rates and the money supply which, in turn, distorts the true price of everything from food to houses and stocks to bonds.

Of course, when it comes to determining prices, the decisions of a few central bankers holed-up in their ivory towers can never be smarter than the collective wisdom of all the people participating in a truly free market across the globe — but that’s the situation we’re stuck with today. As a result, we’re now suffering with a zombie economy on the verge of collapse.

So … how did we get to this point?Hey! You need to be an Insider to view the rest of this article! If you’d like to join, please click “Insider Membership” at the top of my blog page.

Photo Credit: Kheel Center, Cornell University

November 8, 2015

The Question of the Week:

Are cryptocurrencies a legitimate wealth preservation asset?

View Results

Loading ... Loading ...

Recent Posts

  • How To Start Investing In Cryptocurrencies
  • Grandfather Says: The Travails of Working with Stone
  • 5 Expert Tips for Saving Money with a Credit Card
  • How to Implement Strategic Planning Processes
  • Is It Better to Borrow From Your 401k or Take an Early Withdrawal?
  • When It Doesn’t Pay to Buy Big-Ticket Items on Sale
  • Black Coffee: Digital Castles in the Air
  • How to Improve Your Sports Betting Success
  • Toyota Has Started Accepting Bitcoin for Payment
  • 100 Words On: Why You Need Emergency Savings AND a Rainy Day Fund

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. The 6 Most Valuable Grocery Store Products
  2. 2. Series I Savings Bonds Are Now Paying 9.62%; Here Are Their Pros & Cons
  3. 3. 25 Examples of Shrinkflation That No Longer Fool Consumers
  4. 4. 7 Big Reasons Why a Roth IRA Isn’t the Best Way to Save for Retirement
  5. 5. 3 Ways That Great Sleep Helps You Get Richer
  6. 6. What’s the Fastest Way to Pay Down Your Mortgage Early?
  7. 7. How to Save Money on Dental Care So You Won’t Go Broke at the Dentist
  8. 8. Historical Gold & Silver Benchmarks for Wages and Commodity Prices
  9. 9. Tip Inflation: We’ve Got Nobody to Blame But Ourselves
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2022 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2022