November, 2009

How Not to Fix Housing Crisis

This post is older, but classical in its approach to the housing crisis. It sheds light on how the crisis started and grew, and why government intervention will hurt rather than help. It is a good, elementary exercise in understanding economics. Government Intervention Is Needed to Solve the Housing Crisis? It Just Ain’t So! By Steven Horwitz • May 2008 [...]

Propaganda and The American Myth

“America is crumbling from the foundation up, and yet we gather around the TV, talking about a fresh paint job and a new screen door, both bought on credit, while handing our grandchildren a bill they’ll never be able to pay. The only way we can live with this lie while perpetrating these despicable acts upon our own family members [...]

Rosenberg’s Morning Post

David Rosenberg’s morning post is always worthwhile. I particularly liked this reminder/warning: “there is still so much debt that is still being supported by questionable collateral.” And this comment: “we currently have a situation that is not consistent with a plain-vanilla recession but with a depression.” To access his full report: Read full article (PDF 572KB)

A Faith-Based Recovery

The propaganda spewing out of Washington regarding an economic recovery has little basis in fact. This article from the Daily Reckoning shows the improbability of a recovery any time soon. A Faith-Based Recovery By Joel Bowman 11/28/09 Taipei, Taiwan – Today we have something extraordinary for you to ponder. We call it, in the prescribed, politico-doublespeak of the times, a [...]

Stansberry: Bankruptcy of the US is Now Certain

This article concludes, as did my recent post Spiraling to Bankruptcy. that the bankruptcy of the United States is now inevitable. Porter Stansberry approaches the topic from a different angle, using cash flows and borrowing capacity, to support his conclusion. Stansberry  has a great sense of urgency believing “the odds are very high you’ll be wiped out over the next [...]

Wisdom: Eisenhower and Michael Crichton on Science

Anyone can rent a scientist. But when Federal funding is at stake, it appears you can also rent a conclusion. In his farewell address to the nation back in 1960, Dwight D. Eisenhower warned of the danger from the military industrial complex. Less well-noted was his admonition of how scholars (scientists) could be corrupted by Federal employment and funding: “The [...]

Retirement, For Whom?

… your $200,000 ten years ago has been halved in terms of purchasing power. However, in terms of planning purposes, your anticipated retirement amount has been reduced by 75%. Given these outcomes, who will be able to retire? And for those already retired, how many will “unretire?” For Buy and Hold investors, better have a look at the following post. [...]

The Shrinking Presidency

Things are not going well when material like the following from Peggy Noonan appears:  ” ”a critical mass of influential people who once held big hopes for his presidency began to wonder whether they had misjudged the man.’ They once held ‘an unromantically high opinion of Obama,’ and were key to his rise, but now they are concluding that the president [...]

US Morphs into Greece, Financially

One possibility of where the US is headed. The Seeking Alpha article below should probably be read after reading Spiraling to Bankruptcy What Will the U.S. Economy Look Like in 10 Years? Look to Greece by TraderMark “I’ve been reading quite a bit of handwringing over Greece in the UK papers, and came upon this piece from one of my favorite writers, [...]

Spiraling to Bankruptcy

If the Government confiscated everything, the social programs would still be $50 trillion short and the Government would still be bankrupt. Furthermore, no company or individual would be left with anything. The economy is in bad shape. Some say it is worse than any time since the Great Depression. I believe it is actually worse than the Great Depression because [...]

Inflation and PinFlation

Inflation changes our perspective of many things, especially numbers. Richard Feynman stated: “There are 10^11 stars in the galaxy. That used to be a huge number. But it’s only a hundred billion. It’s less than the national deficit! We used to call them astronomical numbers. Now we should call them economical numbers.” The path of inflation reflects itself in more [...]

Obama and His Cardiff Giant

This post originally appeared on American Thinker today. The Cardiff Giant, known as “America’s Greatest Hoax,” has new competition for the title — Global Warming. Recent revelations of what  appear to be doctored data, corrupted scientists and pressured peer reviews have produced terms such as climategate, climaqquidick and similar pejoratives. Describing the events of the past week, Senator Jim Inhofe, [...]