Wednesday, February 25, 2009
Tuesday, February 24, 2009
Oh wait, haven't I said before that inflation is a tax. Please erase that from your memory.
Very well referenced and you gotta love the CBO.
Monday, February 23, 2009
So the President's 10-year budget is going to cut the deficit by more than half by 2013. And yet it will still be half a trillion $s!!.
Increasing taxes on those who make more than $250K a year and winding down the war in Iraq contribute the most to reducing the deficit. Let's hope the Afghanistan mission does not devolve into a destroy the Taliban mission.
Sunday, February 22, 2009
Thursday, February 19, 2009
Wednesday, February 18, 2009
After reading this post over at By Common Consent, I thought for the first time in more than a decade that I might be wrong about the purpose of suffering.
Tuesday, February 17, 2009
And hysteresis? That's more than a little terrifying.
Sunday, February 15, 2009
Friday, February 13, 2009
Wednesday, February 11, 2009
It's all about the basics.
Tuesday, February 10, 2009
As you can tell by now, I am of two minds regarding the stimulus. I have serious reservations about the excessive use of debt (if only our debt to GDP ratio had been closer to 40% instead of +65% at the beginning of this crisis - thank you George!). I am also concerned about the U6 number of 15% (true unemployment - forget the ~7% number being thrown around). I don't know what the best answer is short term and I definitely don't know what the best answer is long term.
The problem is that I don't think anyone else knows either.
"It is clear that the Anglo-Saxon model of supervision and regulation of the financial system has failed.
It relied on self-regulation that, in effect, meant no regulation; on market discipline that does not exist when there is euphoria and irrational exuberance; on internal risk management models that fail because – as a former chief executive of Citi put it – when the music is playing you gotta stand up and dance."
"A sound model of how money and debt are created makes it obvious that we should never have fallen for the insane notion that the financial system should be self-regulating. All that did was give the Cavaliers a licence to run amok".
Credit money, then fiat money?? We don't operate under a fractional reserve system?? Someone needs to reprint all of those macro textbooks.
I suffered physical pain when Keen stated that the only way to inflate the economy (to get it kick started again) was to increase the money supply (i.e., M0) by 25x. No wonder everyone at the Fed and the Treasury is so scared. They know what they need to do, but pulling the trigger is gonna take a much bigger set than they or I have.
Monday, February 09, 2009
Thursday, February 05, 2009
Despite Krugman's shrinking, but still extremely large, platform that is the NY Times, Barro is still beating him in the one place that matters, The Economist Rankings.
Wednesday, February 04, 2009
Yves Smith, over at Naked Capitalism, is foaming at the mouth over the latest bank bailout plan being bandied about at the White House.
For all of the brainpower on his economic team, you'd think that President Obama could come up with something better than more of the same kowtowing to the banks. Due diligence would be a nice start.
- Those who appreciate genius
- Those who fail to comprehend and appreciate genius
Four years ago today I began this blog with the initial hope of escaping the pit that is Category 3 and quickly decided that I was better off not having such high aspirations and quickly switched gears to something that I did know a bit about (i.e., running).
So dear readers, let's hope that the next four years of little analysis and lots of linking bears more fruit than the past four.
Tuesday, February 03, 2009
However, for this post over at Delicious Animals, I must make an exception.
I first met Mr. Delicious Animals when an old friend from the Japan Osaka Mission days (who happens to be Mrs. Delicious Animals) found out that I lived in Brooklyn (her family lived in Westchester) from the Osaka Mission site and reached out to me. Shortly thereafter, we moved to Westchester and ended up in the same ward with the Delicious Animals Family. The short of it is that I know Mr. Delicious Animals pretty well. I won't go into his curriculum vitae, but suffice it to say that the man is probably President of the East Coast Chapter of MENSA (if he would even deign to show up).
So read his educational and brief rant and ignore the bloviating of the talking heads for a day or two.