Brace Yourself....A Deficit is Imminent

As a fiscal conservative and potential libertarian, I feel that free markets are best dealt with through the efficiencies in the marketplace. As the current market conditions have led to much government intervention; the economic ideas of 20th century British economist, John Maynard Keynes have come to fruition. Keynes theories are based on the fact that the state should stimulate economic growth and improve stability in the private sector - through, for example, taxation and public projects (wikipedia.org).

Finance Minister Jim Flaherty is set to deliver the budget on January 27th for the upcoming fiscal year beginning on April 1st. However, today an unnamed source indicated that the budget will include a $64B deficit erasing 11 consecutive years of surpluses. According to Bloomberg.com, "In addition to new infrastructure spending,the government has indicated its fiscal plan will make it easier for workers to qualify for unemployment insurance and provide tax relief in a bid to spur consumer demand". 

Is it safe to stimulate the economy through forced measures such as tax relief? I would argue, NO. It is irresponsible to promote tax relief when it is obvious that the government cannot afford them because eventually the burden will be placed back on the shoulders of the taxpayer through income taxes or VATs. 

Is it our responsibility to provide TARP-like funds to dwindling industrial sectors? NO. Wake up people these are cyclical sectors. They call it the economic CYCLE for a reason. Peaks and trough, expansion and recession are necessary to the growth of our markets. 

Without corrections we would be stuck with inefficient corporations forever. I think we can all agree that we are better off without corporations such as Enron or Worldcom.  In the long-run, will we be so much worse off that we cannot allow GM, Ford, or RBS to fail today. Highly unlikely. 

Remember , in 1929 the DJIA was 381.2. 

CFA - Chartered Financial Analyst

As my obsession with financial markets continues to grow, I find it fitting for me to expand my educational basis through my enrollment in the CFA designation. Quoted by many as, "The Most Difficult Exam they have Ever Written!". As I am always up for a challenge, I feel it is necessary for me to attack this program with all my efforts.

For those who are not familiar with the program; it consists of 3 levels of examination each 6 hours in length. 

1. Level 1 - 240 Multiple Choice questions - testing your basic investment knowledge

2. Level 2 - 120 Item Set questions - applying your knowledge to specific case sets

3. Level 3 - Essay questions - focusing on your writing capabilities to depict situational events

Sounds easy enough. 18 hours of exam writing. Except for the fact that the passing rates for each of the levels is 35%, 42%, and 53% respectively. Needless  to say, those numbers are ridiculously low but also quite rewarding when you become one of them. 

As I embark on the 6 volumes totaling 75 chapters and weighing in at 20lbs, I feel confident that this will be both a rewarding and successful journey. However, only June 6th will tell: 139 days to go.....

New Blog, New Life...

As we are 17 days into the New Year, I felt the need for this space to reflect my current situation in life. The New Year brings new endeavours and new commitments. As I am still searching for that perfect employment opportunity, I feel the need to express my addiction to the financial markets. 

To me, there is nothing more interesting that waking up in the morning and checking out Bloomberg or the Financial Post to see what the days markets are going to bring. Always a good indicator of the days markets is the DOW Futures or how the Asian markets have performed throughout the night. 

So, as I sit on the sideline gathering more and more information, I bring you this blog.  Please enjoy and refute any information that I present to be true as the only way to learn is become aware.