Learning Economics from Peter Schiff and 07/11/11 Market Action

The major indexes (SPY, IWM, QQQ) all came down a significant amount today (See SPY chart below). This has been a choppy market since the end of February. Overall my approach has been mostly cash and try some small positions for a swing trade move. The last two weeks we had quite a powerful rally and now a correction does not seem too surprising. The SPY is sitting the 50 DMA and I plan on keeping an eye on how it acts at this level to help determine if the market has a chance to push past last weeks highs or move back down towards the low of the trading range. My feeling is that the market is going to take at least a day to settle down and I do not feel too confident trying a swing trade at this point.




Also I watched a video interview of Peter Schiff today:

http://youtu.be/OQr5clFsZMU
(The video is an hour long, but I think it is worth the time)

My personal opinion is that is quite possible you will learn more about economics watching this video than a semester of economics at most of our colleges and universities. The model for economic analysis that Schiff uses is referred to as the Austrian School of Economics. The prevailing theory right now (and has been for the 20th century) in our  university institutions and our Federal Government is Keynesian (Named after John Maynard Keynes). In my opinion, the Ecomonic model most consistent with Liberty and the philosophy of America's Founding Fathers is the Austrian Model. I think that we followed that model throughout the 18th and 19th centuries. We followed to much lesser extent in the 20th century. It was during the period between the American Civil War and through the Industrial Revolution that America really set it self apart from the rest of the world in terms of wealth and standard of living. The same principles that made us a wealthy nation are no longer followed. Take a look at the video. If you liked it learned something send it to someone else to watch. Perhaps by educating people we can slowly return this nation to her former glory.