Thoughts from around the investment world – 4

Today we’re featuring First Trust.  Here are some unconventional thoughts from their March 21st Morning Monday Outlook:

1 – The Panic of 2008 was not caused by tight monetary policy.

2 – Zero percent interest rate policy (ZIRP) and Quantitative Easing (QE) did not save the US or global economies.

3 – Monetary policy in the US is getting looser as the Fed hikes rates, and,

4 – Negative interest rates in Japan and Europe are not working.

If anyone’s interested we would be happy to provide a summary of their thoughts on these subjects.  We think it’s important to look at the economic world from the perspective of people who live in “Realville” and examine conventional wisdom, which is so often wrong.

Regarding the first point, keep in mind that all the “smart people” in and out of government were convinced that real estate was safe because it could not go down.  Flipping houses for ever more ridiculous prices became a national obsession and formed the basis for an entire cable TV network.

And when it ended the ultimate culprits pointed the fingers of blame to everyone except themselves, leaving millions poorer.

We will have more to say on these topics in subsequent posts, including the new phenomenon of negative interest rates which some central banks have already adopted.

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