See the 1940 Dow analog, when the markets crashed in May and again during election week.
Bonus: Murphy v. Krugman update...nearly $50k raised to date.
What exactly does Paul Krugman know that the rest of us don't?
My take on the election and what it might mean.
The Astounding Failure of the US Educational System, Part 3 (And Why Entrepreneurship Can Save America)Submitted by smartknowledgeu on 10/29/2010 05:21 -0500
Far too many people equate the pursuit of advanced educational degrees with intelligence and an increased likelihood of success. I know this is conventional thinking, but I highly disagree with this theorem. As an entrepreneur, it is my sincere belief that the much safer route for young adults to seek during the next decade will be realized through the entrepreneurial pathway versus the traditional pathway of “climbing the corporate ladder”. This means skipping the traditional business academic process may become in vogue in future years.
The president's own former advisor, and now very much outspoken critic, Peter Orszag has joined the cool kids by releasing the following scathing oped in the NYT, whose topic is, drumroll, QE2: "by perpetuating an artificially low 10-year government bond rate, the Fed may be delaying the very fiscal policy action that the nation most needs, while doing little to boost an economy whose principal problem is not high long-term interest rates." The message, for anyone having read the prior two essays, or Zero Hedge, is nothing new. What is, is the massive onslaught by virtually everyone of any political and financial stature on this pretty much inevitable policy decision by Bernanke. The question we have is did Goldman's estimate that QE2 needs to be up to $4 trillion blow the party? Are expectations for future monetary easing so high (and unattainable) now that the market had to be artificially be pushed lower so there is some upside on November 3? Because for all those who believe that the Fed has found religion and thinks a strong dollar is suddenly a policy goal, we have two words: "Wake up."
The most amusing email this morning sent around the trading desk community comes from the otherwise perpetually jovial Goldman Europe strategist Erik Nielsen. The email subject is simple enough: "Bad news out of Portugal." And the news is bad.
The inaugural Chris Martenson "Straight Talk" contributor is Mike Shedlock, author of Mish's Global Economic Trend Analysis, one of the most visited and respected economic blogs on the Web. Mish is an outspoken deflationist and outlines his rationale for being so in his answers to our questions. He is also a registered investment advisor representative for SitkaPacific Capital Management.
Gonzalo Lira picks up on a topic much discussed on Zero Hedge, if not so much elsewhere: the religulousity (thank you Bill Maher) of the "science" of economics: "It’s no great insight to say that economics—the so-called “dismal science”—has had a dismal track-record in terms of predicting macro-economic events over the last forty-odd years. And as for the last couple of years? Sheesh—a monkey throwing darts would have done a better job of predicting how the macro-economic picture would play out. But I argue that economics is not and has never been a science—what's more, it's become a religion. And just like any religion, it has adepts, denominations, and orthodoxies. Which is why it will fail in its efforts to get out of this Global Depression." —Gonzalo Lira.
Two simple charts tell it all. Bonus: at the end, we explain how to make Paul Krugman squirm.
After observing the considerable amount of interest over my most recent article, The Astounding Failure of the US Educational System that has received more than 15,200 reads thus far, I have decided to extend that article into a 3-part series. Here’s Part 2.
Some scary developments in Iceland including a 41% inflation in the past three years, 63% of mortgage is underwater, and 40% of homeowners are insolvent make me wonder how far behind is the United States?
Paul Krugman doesn't know anything about Austrian economic theory but he feels competent to criticize it. He has refused to debate the topic in the past. Now a top notch Austrian theory economist is challenging him to a debate. The lure: $100,000. Will he do it?
Today’s Keynesian economists have convinced boobus Americanus that the Great Depression was caused by the Federal Reserve being too tight with monetary policy and the Hoover administration not providing enough fiscal stimulus. Ben Bernanke and Barack Obama used this line of reasoning to ram through an $850 billion pork-laden stimulus package, as well as the purchase of $1.2 trillion of toxic mortgages by the Federal Reserve. The only trouble is that this storyline is a complete sham. The fact that colossal stimulus spending, zero interest rates, the purchase of over a trillion in toxic assets by the Fed, and the loosest monetary policy in history have done absolutely nothing to revitalize the economy, has proven that Keynesian policies have been a wretched failure. This is not a surprise to Austrian school economists.
The unnamed official nearly fell off his chair laughing when I said "So, does the US still have a strong dollar policy?" It was meant as a joke.
- The real stock rally killer: Analysis: Bush tax cuts might just expire after all (Reuters)
- Bondholder `Immunity' to Losses Challenged as Irish Bail Banks (Bloomberg)
- Fed's Hoenig: Further Easing Poses Risk To Nascent US Recovery (WSJ)
- Fed's Bullard Favors Open-Ended Bond Purchases (MarketWatch)
- Ohio AG: foreclosure probe won't stop post-election (Reuters)
- False expectations: The historic infrastructure investment that wasn’t (Economist)
- Democrats slam another campaign opponent: China (Reuters)