Bueller? Bueller? Bueller? Anyone? Anyone?

I had the opportunity to spend the last few days at another professional conference in California.   You get to see some great speakers at these events including politicians like Jeb Bush and ex-athletes to help you get inspired to reach your dreams, and at this particular conference Mr. Ben Stein himself.    I had always imagined Ben Stein to be this tall lanky guy with his thinly framed spectacles lodged on his most recognizable nose.    It turns out he can’t be more than 5′ 4″, looks like he hasn’t missed a meal lately, and treks around in black vans like sneakers.    As a respected author, comedian, and economist, I was excited to hear his perspective on today’s economy.   Here are four things I learned from Ben Stein today.

1.) Without Two Moves We Would Have Hit The Great Depression Part Deux – According to Ben (or Benji as his family affectionately calls him), Bank Of America’s bailout of Merrill Lynch which was reported to be on the edge of bankruptcy was one of the two moves that helped stop another Great Depression.   Mr. Paulson didn’t bail out Lehman Brothers, but places like Merrill and Bear Stearns got a stay of execution.   Second, the massive TARP money pumped into the system by the Federal Government to bail out the big banks.   This TARP money allowed several of these banks to stay afloat and continue to run their businesses through the traumatic times in 2008.  I think it’s kind of ironic now four years later the US Government has decided Bank Of America is the bad guy and filing a civil lawsuit against them—seems backwards doesn’t it?

2.)   When It Comes To Unemployment We Are Short In Both Supply And Demand –   Most people who are looking at our economy today are concerned about the overall lack of job growth.  Between the lack of large companies hiring and the shortage of capital going to small businesses to expand, unemployment continues to hover at much higher than normal rates.   However, Mr. Stein argued that the other problem is about the supply of younger people who are willing to take ‘blue collar’ or jobs that wouldn’t seem to fit within getting a college education.  In fact, in a prior session with Jeb Bush, he shared that you could make upwards of $70,000 to $80,000 a year being a truck driver in North Dakota.   The big question is do we all want what we want?  Or, should younger people (and older) go out and hustle and take the jobs where they are right now?

3.)  We Need To Tell People It Is Time To Stop Grieving –  Ben spent a bunch of time in the lecture talking about the fact that we are giving too much flexibility to younger people to complain and grieve on just about anything that they want to these days.   They don’t like their teacher . . .just complain about it!  They don’t like their boss . . . just whine about it!   They think that people are being mean to them . . . just tell somebody that it isn’t fair!   He shared that we need to give all people (including the next generation) less outs by complaining and arguing that things should be easier.   The fact is that many people who came here in the early 1900’s and successful people today can do anything they want in the great country with enough hard work, fortitude, and determination.  It just doesn’t all happen overnight.

4.)  We Can’t Keep Printing Money –  I guess this seems like an obvious one, but Mr. Stein shared that when all of the money was lent out to banks/financial institutions, most of the money was invested in Treasury Bonds by the big banks.   What should have happened as money supply went right through the roof is a stream of loaning money to small and medium sized businesses to allow them to expand their operations and hire more people.   This is the fundamental idea behind doing something like quantitative easing which we have done twice now.  Will a third time crush our economy into a credit card type debt that we cannot recover from in the future?

I guess when Ben Stein played the famous teacher in Ferris Bueller’s day off, he coined one of the phrases we know today called Voodoo Economics.   Who knew 25 years later that his prophecy might fulfill itself and put Ben Stein lecturing in front of thousands of people many years later?   Guess I won’t be late for one of his classes anytime soon!

Visit oXYGenFinancial.net to request a consultation on how to make smart money moves for your future.

Written by:

Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®

Co-CEO and Founder of oXYGen Financial, Inc – The Leaders in Gen X & Y Financial Advice and Services

Ted Jenkin  is one of the foremost knowledgeable professionals in giving financial advice to the X and Y Generation.

Find us on Facebook here – CLICK CLICK

Securities and Investment Advisory Services offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Oxygen Financial is not affiliated with NFPAS. NFPAS does not provide tax or legal advice.   This site is published for residents of the United States only. Registered Representatives and Investment Advisor Representatives of NFP Advisor Services, LLC (NFPAS) may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact NFPAS Compliance Department at 512-697-6000.   PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. NFP Advisor Services, LLC makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is NFP Advisor Services, LLC liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.

About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin @ Your Smart Money Moves

Ted Jenkin has spent the past 25 years giving personal financial advice to thousands of people across the United States. After graduating from Boston College in 1991, Ted is currently featured as the weekly personal finance expert on Headline News/CNN and regularly contributes to the Wall Street Journal. He also wrote a popular best selling book called 100 Smart Money Moves To Make Now and co-hosts the nationally syndicated podcast The Shrimp Tank.In 2008, Ted founded oXYGen Financial to help revolutionize the financial services industry by creating a new company that focused on serving the X and Y Generation. oXYGen Financial now has more than 3,000 clients throughout 25 states across the country and manages more than $500,000,000 of assets. Ted has been featured in over 100 magazines and is often requested to speak at conferences around the world.Ted lives in Milton, GA with his wife Genna and three kids Olivia, Lyla, and Louden. Email Ted – Click Here 770-777-0427 (800-355-9318 FREE toll free) Background and qualification information is available at FINRA's BrokerCheck website.

One Comment

  • November 2, 2012

    I agree that the younger generation is a bit too coddled. I’ve taken many entry level jobs well beneath what I thought I should get paid. The economy doesn’t allow us to be as picky. I think we are seeing a trend that will become part of our longer reality. We will all become more frugal, value just having a job, etc. I know I’m happy to have a job. I have to pay back all of the debt I accumulated in college, let alone my overswiping the credit card habit.