Suggested stops for the December rankings are provided below. These are mechanical calculations based on ETF volatility. As usual, the first column represents the price at the end of November and the second two columns represent possible stop levels. One is tighter than the other and whether you choose either or set your own is […]
Ludwig von Mises, Frederich Hayek and other Austrians believed in the foolishness and errors inherent in attempting to macromanage an economy. None, however, expressed their objections quite as colorfully as Seth Klarman: QOTD: "Modern economies are too complex to be reliably modeled; their connections and correlations are loose and imprecise, the second- and third-order effects […]
The “Broken Window” fallacy was exposed by Frederic Bastiat over 150 years ago. It never fails to reappear every time there is a natural disaster. The fallacy is a marker of intellectual IQ. Those who commit the fallacy should not have any credibility, especially with regard to economics. Bastiat explained how those who saw a […]
Outsourcing is a good thing, despite our two presidential opponents excoriating each other over it. Harry Binswanger provides a defense for outsourcing in a recent Forbes article. Here is an excerpt from the article: Americanism means individualism, but “Hire American” is collectivist, urging businesses to pay more just to patronize “our guys.” This is not […]
The following piece from Nicholas Snow puts into perspective the game of government. By that, I mean government is unable to do something for you that they have not done first against someone else. Government has no money and produces nothing. Anything it has it has taken via coercion from some productive member of society. […]
For free-market layman economists, the differences between the Chicago School and the Austrian School are often blurred. Both often come to the same policy conclusions, but from very different perspectives. Robert Murphy, an Austrian, describes the differences here.
Milton Friedman’s TV series “Free to Choose” aired on PBS circa 1980. It probably did more good than any book or video before or since bringing free market principles to the masses. Apparently there is a remake of sorts coming to PBS. As I understand it, it retraces Friedman’s steps and visits around the world […]
This interpretation of Keynes through Hayek’s eyes was produced by Taking Hayek Seriously: Hayek was a close student of the economic of John Maynard Keynes — he was, after all, the one who made the “General Theory” necessary after his seismic detonation of Keynes’ earlier “Treatise”. So what did this master economist — one of […]