By Monty Pelerin, on March 10th, 2010
I don’t have the data, but perhaps some readers might. I have often speculated that the cost of a state-university degree is higher than a private university. In my state, NC, it would be interesting to compare the cost per graduate of UNC-Chapel Hill to the cost per graduate of Duke University. I am speaking of cost, not tuition. Obviously, tuition at state universities is lower because it is subsidized by taxpayers. If anyone has a source of data, for either NC or any other state, I would be pleased to receive it and analyze it to test the hypothesis.
Not related to this cost comparison is a post today by Karl Denninger. Denninger takes no prisoners on his website. Here is a post dealing with the “privileged class,” the University of Illinois. I suspect most states are similar. We know from many sources that government employees are better compensated than their counterparts in the private sector.
Tuesday, March 9. 2010
Posted by Karl Denninger in Education at 19:56
IF You Are Going To “Demonstrate”….
Then aim your “demonstrating” at the people who are bankrupting your state – and you personally.
I speak specifically of people such as those that The Daily Illini pointed out – all employees for the University of Illinois.
Let’s see what we have here….
The head of the football team – the coach – makes $1 million. For coaching a college football team.
The “intercollegiate (sports) director makes $600,000.
The President of the University
Continue reading State University vs. Private University
related_posts();
By Monty Pelerin, on December 28th, 2009 Kicking the Can Down the Road
If you believe that the housing market is improving, it might be understandable given the “pumping” provided by main-stream media, CNBC, government officials and Federal Reserve statements. However, you might want to look at government actions rather than propaganda.
On Christmas eve, after the close of markets, Bloomberg reported regarding Fannie and Freddie: “The two companies, the largest sources of mortgage financing in the U.S., are currently under government conservatorship and have caps of $200 billion each on backstop capital from the Treasury. Under a new agreement announced yesterday, these limits can rise as needed to cover net worth losses through 2012.”
This action is not consistent with an improving housing market. It represents the kind of panic reaction that might be taken in a market that is imploding. In the words of Julian Mann, vice president of First Pacific Advisors LLC: “They don’t want the foreclosures now, so they’re saying, we’ll pay whatever it takes to continue to kick the can down the road.”
Karl Denninger in an excellent post entitled Fannie / Freddie – What Does Treasury Know? provides the following:
What’s the bond market going to think about a literal $5 trillion guarantee (for three years anyway) on MBS? Might some people have known about this in advance, with that being the reason for the bleed in the long end of the bond curve this last week or so? One wonders – of course nobody would ever trade
Continue reading Housing Market is Awful
related_posts();
By Monty Pelerin, on December 25th, 2009
What the Economy Needs
“… all Ponzi schemes eventually fail under their own weight. The US debt scheme is no different.” Sprott Asset Management
Belief in the economic recovery story is akin to belief in Santa Claus. Both make us feel better, but both are unlikely. We may have another quarter or two of government-driven GDP growth, but we will not have a recovery, at least not with the next several years. Government spending may be able to raise GDP, but the ability to continue spending is near an end.
The government has no money and diminishing possibilities for continued borrowing. The chart to the left shows rapid decreases in debt support from foreigners. Without foreign funding, the government will be unable to spend at anywhere near current levels. (Of course, the possibility of “printing” money might provide a short-term extension before the dollar collapsed and/or hyperinflation occurred.)
Sprott Asset Management issued a report entitled “Is It All Just a Ponzi Scheme?”( Sprott December.pdf). The report addressed the unsustainable financial situation:
We are now in a situation, however, where the Fed is printing dollars to buy Treasuries as a means of faking the Treasury’s ability to attract outside capital. If our research proves anything, it’s that the regular buyers of US debt are no longer buying, and it amazes us that the US can successfully issue a record number Treasuries in this environment without the slightest hiccup in the market.
The chart to the right shows the decline
Continue reading Ponzi Scheme Unravels
related_posts();
By Monty Pelerin, on November 5th, 2009
Image via Wikipedia
Image via Wikipedia
Fannie Mae reports third quarter loss of $18.9 billion and requests another $15 billion in taxpayer funds.
Another government enterprise comes back to the well for more, with no end in sight. Bloomberg has a summary of the results here. FNM was the organization that couldn’t do accounting properly several years back. Based on inaccurate numbers, they paid government-hired cronies huge bonuses. There is little doubt in my mind that this accounting is also wrong, but for different purposes. The government cannot release the real numbers. I believe they would be terrifying. As Joe Weisenthal states: “Just to be clear, Fannie Mae (FNM) is still a total sinkhole.” Unfortunately this coverup, along with other policies, will result in much larger taxpayer losses.
One of the other policies was announced yesterday. Fannie intends to turn borrowers into renters. Billed as a way to assist homeowners (it will subsidize some of them with taxpayer money for about a year), I believe it is just another trick to defer recognizing losses. Karl Denninger agreed with a scathing post yesterday. He described it as just another “scheme after scheme, scam after scam, all intended to do one and only thing – avoid a true and accurate accounting of losses that have already occurred.”
Freddie Mac is with Fannie in receivership. The Continue reading Enron was an Ethical Angel compared to our Government
related_posts();
By Monty Pelerin, on November 5th, 2009
Image via Wikipedia
Good job numbers today — NOT!
Once again we have the headlines and reality diverging. Karl Denninger provides an analysis of why the job situation is worsening rather than the “improvements” that are being heralded.
Watch The Distortions (UIC Data)
The Market Ticker
Thursday, November 5. 2009
Posted by Karl Denninger in Macro Economics at 09:13
Watch The Distortions (UIC Data)
The unemployment claim release looked good. Here’s the headline:
In the week ending Oct. 31, the advance figure for seasonally adjusted initial claims was 512,000, a decrease of 20,000 from the previous week’s revised figure of 532,000.
Sounds good, right? So does this:
The advance number for seasonally adjusted insured unemployment during the week ending Oct. 24 was 5,749,000, a decrease of 68,000 from the preceding week’s revised level of 5,817,000.
Now let’s talk truth:
The advance number of actual initial claims under state programs, unadjusted, totaled 480,178 in the week ending Oct. 31, a decrease of 14,216 from the previous week. There were 466,341 initial claims in the comparable week in 2008.
The rate of firing is higher than it was this week last year – a really, really bad time, if you remember. This was immediately post-Lehman and AIG, when firms were shedding employees like water off a
Continue reading Employment Worsens Despite Headlines
related_posts();
|
Friedrich von Hayek
Friedrich von Hayek founded the Mont Pelerin Society.
“Monty Pelerin” is a pseudonym chosen by this blogger to convey general agreement with the philosophy, goals and spirit of the Mont Pelerin Society. No other connection exists between the blogger and the Society.
|
