The Capital Note — When ‘Cheap; Money Won’t Be, What Then?

Erwin Oropesa

President Joe Biden gestures during a meeting at the White House in Washington, D.C., June 28, 2021. (Kevin Lamarque/Reuters)

Welcome to the Capital Note, a newsletter about business, finance, and economics. On the menu today: the dangerous illusion of cheap money, cutting dividends is not the answer, home prices and inflation, warning signs from the Skew index, and fungi play the markets.

News and Views

TANSTAAFL and Ultra-Low Interest Rates
Ultra-low interest rates are an invitation to malinvestment, irresponsibility, and delusion (not mutually exclusive failings), especially when those rates are, even if only in part, the work of non-market actors.

Quite a bit of the borrowing that is under way at the moment (and has been for a while) is going to end in disappointment and tears. Eventually it will also lead to a major crisis in the government’s finances.

Brian Riedl, writing in the Washington Post:

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8 Retirement Distribution Strategies That Will Make Your Money Last

Erwin Oropesa

Saving money for retirement is only part of ensuring a financially secure future. The other half involves making smart decisions about withdrawing that cash.



a man sitting at a table using a laptop computer: Senior couple using a laptop while doing some paperwork a finances at home


© (Getty Images)
Senior couple using a laptop while doing some paperwork a finances at home

“It’s having a plan for how and when to take money out of your retirement accounts,” says Andrew Meadows, senior vice president of HR, brand + culture at Ubiquity Retirement + Savings, a firm that provides 401(k) accounts to small businesses.

Finance experts say there are a handful of retirement distribution strategies that can be used to stretch money further for a long retirement, and these can be combined and changed over time. Current market conditions, tax rates and a person’s expected longevity are all factors that need to be considered.

Rather than pick a single method to use throughout retirement, talk to a financial advisor about how

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100 College Majors That Earn the Most Money

Erwin Oropesa

Choosing a college major is a big decision. Students must select to study something that challenges and interests them while balancing the hard realities of the job market and outlook of career paths. A good salary coming out of college is key to a secure middle class future, and with increasing student loan debts, choosing a major that yields bigger salaries out the gate becomes ever more desirable.

To show just how valuable these college majors can be, Stacker used data from a 2020 PayScale report to rank the top 100 college majors that alumni make the most money from in their respective professional careers. The rankings, released in 2021, are based on the highest average mid-career salary. Information is provided about the jobs a major in that area might be hired for, which skills they’ll attain while in school, and what the Bureau of Labor Statistics projects their prospects

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