Our Trip to Sunny Fields

“Velkommen til Solvang!” greeted the cheerful woman behind the counter at Birkholm’s Bakery & Cafe on Sunday morning.  We had just made the drive with our wife and kids up Highway 101 and were eager to sink our teeth into a fresh baked Danish kringle.

The Santa Ynez Valley, though just several hours north of Los Angeles by car, is a world apart…both in attitude and ambiance.  The further north you travel the less likely it is that the driver next to you gives you the middle finger as they blow in front of you.  Tensions subside.  Breathing slows.

Somewhere between Woodland Hills and Ventura you can physically feel a change come over you.  The frenetic energy dissipates from a floodwater torrent to a meandering stream.  By Santa Barbara it’s a tranquil murmur.  Upon dropping over the Santa Ynez Mountains any lingering memories of the sea of concrete left behind are pleasantly replaced with a sea of vineyards.

Solvang, which is Danish for sunny fields, is a disorienting delight.  How is it that a small Danish village, where pickled herring and red cabbage are more common than hamburgers and tacos, came to be in a California coastal valley? Continue reading

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The Mad World of Money

About 4.4 million workers disappeared from the labor pool over the last four years.  Where did they go?  No one quite knows, exactly.

They don’t show up in the unemployment numbers.  But they do exist, hidden behind the statistical shadows.  The lucky ones, those who are gainfully employed, get after it each day.  They go to work and trade their time, talents, and labors in exchange for money.  Of those, a small subset is able to spend less than they make…and save the difference.

If the difference becomes big enough, and they save long enough, eventually they’ll build real and lasting wealth.  One day they may no longer have to work, if they don’t want to.  Unfortunately, getting to that point has become increasingly more difficult.

For while the hardworking, prudent, fellow may be able to scrape together a small grubstake.  All the time, even while sleeping, an appointed bureaucrat is busy shoveling money out of his bank account through the back door.  It really does sound quite fantastical, no?  But it is happening all the same. Continue reading

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Bernanke’s Monetary Philosophy, Explained

The days continue to get longer.  The nights continue to get shorter.  This tells us a unique opportunity is in front of us…

It’s time to make hay while the sun still shines.

As for the stock market, the sun has never shined brighter.  Day after day, golden rays of light cascade down upon Wall Street.  Day after day stock prices hit new record highs.

The relentless run up is breathtaking and fantastical.  DOW 16,000…there’s nothing stopping it.  Not even the IRS.

Year to date the Dow’s up over 17 percent.  Many people have come up with many reasons why stocks will continue to rise.  One popular reason, as described by Jeff Reeves at MarketWatch, is that “rates remain low, fostering investment and spending.” Continue reading

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To The Class of 2013

Today we depart from our usual cogitations to offer some remarks to the Class of 2013.  Though no trade school or remedial academy invited us to deliver this year’s commencement address, we won’t let that get in the way.  What follows, free of charge, are several observations, opinions, and anecdotes, we’ve prepared for this year’s graduating class…

Overqualified and Unprepared

Those who can, do; those who can’t, teach…or so goes the saying.  Unfortunately, this is a bunch of ill placed flattery.  For if your college experience was anything like ours then you know university professors can’t teach either.  So if you learned anything these past four years it was, by necessity, how to learn on your own.

You’ll soon find out this is a pretty darn valuable skill to have.  Too bad it took four years, countless beer parties, and beaucoup dollars to master.  But if you were, in fact, able to master it then you’ll be able to achieve just about anything…if you’ve got the requisite guts and determination. Continue reading

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