Extraordinary Doings in the Bond Market
To go along with the piece I wrote earlier today (here), the bond market appears to have picked up on the theme of deflation. The 30-year US Treasury bond rocketed upward in price to more than 118 and a half by today’s market close, and much of the move came late in the day. This price corresponds to an interest-rate of 3.49% for the long | Read More »
What Lies Ahead For General Motors
The most urgent piece of economic news and policy over the next several weeks will be the fate of the General Motors Corporation. It will take precedence over the general policy response to the worsening recession. The problems in the auto industry go well beyond the Detroit Big Three. All eleven of the major automakers with operations in North America have come under severe stress, | Read More »
Still Angry at Obama’s win?
I have a story to tell so please stay with me while we’re on this written journey as the circular nature of some of the statements do get closed at the end. Please also remember my motto: Life is not Linear which is why Pi is so important. That Obama won is not the issue that I’m upset about. At 52%/48% I’ve realized that during | Read More »
Is Bureaucracy the Right Prescription?
This afternoon on Bloomberg Radio, Charlie Stein talked with Laurence Kotlikoff, professor at Boston University and President of Economic Security Planning Inc. The discussion was primarily framed around an article that Dr. Kotlikoff penned for Bloomberg yesterday, where he introduces his recommendation for a medium-term solution to ensuring “safe” assets make it to the markets, rather than the toxic ones that have gotten us where | Read More »
The Great Wheel of American Politics
Looking over American political history in the “modern era”, there is a clear cyclical pattern – a great wheel of American politics if you will. Looked at from the right, we let “hope” get the better of us and run to the liberal extreme of trying to protect everyone from their bad decisions and control the economy to be more “fair and equitable” and conorm | Read More »
Shorter Greg Mankiw.
Please don’t govern using the same economic arguments and policies that you successfully ran for President on. Shorter Moe Lane: Yeah, good luck with that. (Via Instapundit: See also Patterico)
Economics 101 For Stupid Politicians
For those who think raising taxes even if only on those making over $250k a year is a good idea, I submit that you don’t know what you’re talking about. I owned a small franchise food service business from mid 1998 to mid 2002. Two locations, 85 employees, $1.4 mil a year in sales, (up from 700k when I bought it). I worked non-stop, about | Read More »
10 questions for an Obama voter
We’ve been asking economics students who support Obama a few questions. Here they are, with a representative sample of the answers: Did you support NAFTA and CAFTA? “Yes.” Do you support the Columbia Free Trade Agreement? “Sure.” Do you support the South Korea Free Trade Agreement? “Yeah.” Do you support increasing tariffs on Chinese goods? “No.” Do you support farm subsidies? “No.” Do you support | Read More »
Trickle down economics 101
Hey you Obamatrons: Listen up. Trickle down economics 101. When a rich guy makes it, he goes out and buys the usual rich guy stuff. Big house, nice car, Rolex watch. He then has left over this extra cash. Now what shall I do with this extra money? I know, I’ll invest this money in stocks, mutual funds, bonds, cd’s. The very instuments that banks | Read More »
Did Bill Clinton Help of Hurt Barack Obama?
I found this quote from Bill Clinton odd when he campaigned for Barack Obama recently down in Florida: I haven’t cleared this with him and he may even be mad at me for saying this so close to the election, but I know what else he said to his economic advisers (during the crisis),” Clinton told the crowd at a Wednesday night rally with Obama | Read More »
In Praise Of Tax Havens
Another excellent video from Dan Mitchell and the folks at Cato, who stand athwart conventional wisdom and force its denizens to rethink their assumptions:
Trickle Down Economics: The good, the bad, and the ugly
Trickle down economics is one of the most hated, and beloved ideas in politics. Just the mention of of trickle down economics makes many republicans smile with a love of Ronald Reagan and many left leaners cry with a hatred of the free market period lead in by the Reagan revolution. I have been recently, like millions of Americans, been paying very close attention to | Read More »
JFK Endorses North Dakota Tax Cut (Measure #2)
Paul Krugman’s Nobel Prize
Tyler Cowen puts forth some very good reasons why the award of the prize is well-deserved and if one considers Krugman’s pre-punditry work, one easily comes to the conclusion that the prize was very likely, if not inevitable, in Krugman’s future. Arnold Kling adds to the discussion and four years ago, Bryan Caplan noted that there are certainly a number of reasons why free marketeers | Read More »
Simple Economics and Obama’s Promises
Hey all, Make the economy simple, just 100 people out of $100.00. Now it looks like this: 1 person pays $39.00 by himself. 49 people pay $58.00 among them. 5 people pay $3.00 among them. 45 people pay nothing at all. TOTALS 100 people pay $100.00 Obama says he will raise the rich tax from 15% to 28%.He says he will give the 45 paying | Read More »