I continue to be encouraged by the fact that energy policy is the one issue on which Senator Obama has refused to compromise his principles. At no point has he given any hint of flip-flopping in the direction of allowing more domestic oil and gas production. The thing that makes this issue potentially good for Republicans if handled correctly, is this: most people instinctively understand | Read More »
First off: a heartfelt Happy Anniversary and best wishes for continued success to RedState’s good friend Rush Limbaugh. The headline from yesterday’s advance estimate of second-quarter GDP was that the US economy grew at an annual rate of 1.9 percent in Q2. This was disappointing news because private forecasters had been expecting a number well above 2%. Additionally, growth in each of the past three | Read More »
We spend a lot of time worrying about the economy in the United States, especially as it relates to politics and policy. We’re facing very slow growth, well below the long-term trend, and certainly below what we’re capable of. At the same time, inflation is running well above normal (we reached a 5% annual rate in June). Europe faces similar problems, although their policy response | Read More »
We were invited to attend a call with some very illustrious people this morning who are advising John McCain on economic policy: Martin Feldstein, Carly Fiorina, Meg Whitman, and John Taylor. As a tech businessman it’s always a privilege for me to hear from these two ladies, and as a dilettante economist, it’s even more exciting to hear from Doctors Feldstein and Taylor. The points | Read More »
I’m often asked to speak in favor of lower Federal deficits. I’m not sure how clear I’ve been about this here, but I’ve long been very skeptical of the standard argument, found on both sides of the aisle, that fiscal discipline is a Good Thing.™ I realize that it takes some nerve to fly in the face of all the fine people on our side | Read More »
With the final passage of the Housing and Economic Recovery Act of 2008, we have officially embarked on the New New Deal. We’ve come to the end of a 30-year cycle of deregulation and are now moving into a period of expanded government involvement in the economy. As Milton Friedman said, real change is actually quite rare, but when it does come, it generally activates | Read More »
In the financial markets, last week was the wildest and most dramatic one since the Bear Stearns Companies collapsed last March. The subject was whether we would see a collapse of Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that together own or guarantee $5.3 trillion in US home mortgages. And by extension, the fear spread to the entire US financial sector. The popular | Read More »
In our super-secret Contributor’s Conclave, we were discussing a certain Presidential candidate of notorious metrosexual proclivities, who had the bald effrontery to wear flip-flops with a blazer and slacks. And the question quite logically was asked: “This guy is supposed to bring culture and civility back to the White House?” To the best of my knowledge, Obama has promised Hope and Change, rather than culture | Read More »
As of Sunday night, the US government, speaking through Treasury Secretary Henry Paulson, has committed to guarantee the value of securities issued by the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. That means that you, dear Taxpayer, are about to get into the housing business in a way you’ve probably never imagined and certainly didn’t choose. So it’s worth asking a few questions about | Read More »
As of Sunday night, the US government, speaking through Treasury Secretary Henry Paulson, has committed to guarantee the value of securities issued by the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. That means that you, dear Taxpayer, are about to get into the housing business in a way you’ve probably never imagined and certainly didn’t choose. So it’s worth asking a few questions about | Read More »
Update: 9:40am EDT, 14Jul08: Overseas markets reacted well to the Paulson “we have a plan” statement. Asian markets ended lower on regional concerns while Euro markets are somewhat higher. The US stock market has opened up over 100 points, while the US Treasury market is only slightly lower. FNM and FRE stock were both up about 20% in pre-market trading, while their bonds, swaps, and | Read More »
From an AP wire story, we hear that Senator Obama believes the US economy is in recession. If you’re in business or you follow business, your response is likely to be “No [excrement], Sherlock.” What frustrates me no end, however, are statements like these, which are being spun as His Highness’ “most definitive” statements yet on the economy: “I have little doubt that we’ve moved | Read More »
Front and center this week have been the ill fortunes of Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that together own trillions of dollars’ worth of US home mortgages. At this point in time, there really is no reason to own the stock of either company. The Administration is said to be looking carefully at whether and how to do a government takeover | Read More »
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