Deadman's picture

    The Fed's ultimate hubris...

    So the powers that be on the Federal Reserve Board have decided to engage in round two of their little quantitative easing experiment, basically agreeing to purchase $600 billion in government debt over the next 8 months in order to keep interest rates artificially low and hopefully juice the economy in the process. 

    Doctor Cleveland's picture

    The Mortgage Crisis in the Tranches

    I've posted about the housing and mortgage crisis, and the impending dangers, here and here, but there's one additional problem that I hadn't got my head around when I wrote those posts. That's the tranche problem, which is likely to lead to all kinds of perverse incentives and unforeseen difficulties.

    Doctor Cleveland's picture

    Realism About the Housing Mess

    Most public debates over the mortgage and housing mess have been running aground on the false-dilemma problem, framing the a problem with several possible solutions as a choice between only two options. At least one of the options in false dilemmas is always completely moonbat crazy, and frequently they both are. The false dilemma I've been hearing these days goes like this:

    "We either have to give mortgage lenders a free hand, and forget about the legal details, or just let borrowers keep their houses for free without paying anything!"

    Doctor Cleveland's picture

    Bailout II: The Sequel

    So, the story about bad mortgages, by which I mean not simply ill-conceived loans on houses that have hemorrhaged value but loan transfers with forged or non-existent paperwork, is beginning to make it into the daily news. We're going to hear much more about it, I'm afraid.

    Doctor Cleveland's picture

    Teaching Shakespeare and the New Normal

    My profession has a lot of annual rituals, some obvious and some not, and one of them happened the week before last: the annual job list went live (and, in another annual ritual, came precariously close to crashing for the first afternoon).

    Doctor Cleveland's picture

    How They Measure the "End" of a Recession

    So, despite the way the economy feels in your neighborhood, there's been an official statement that the recession ended last June. Yup. All over. That is a perfectly sound statement at the same time it doesn't mean what the rest of us mean by "end of the recession."

    Doctor Cleveland's picture

    What Happened to America's Economy


    We're always told that economics is a complicated science, which is true, but also that bottom-line practical economics is very simple. But the simple rules we've all learned seem to have landed us into an incomprehensible mess. Let me try to recap what's happened.

    Obviously, every business needs to make a profit to survive. This is done by keeping costs lower than revenues. If you're selling something, you need to make more money selling it than you spend in making or buying the product and in paying your workers.

    William K. Wolfrum's picture

    Austerity in Greece leading to Civil War, not a good economy

    Shockingly, turning the population upside down and shaking them to collect loose change isn’t working out as well as the EU or Greece hoped. From Der Spiegel:

    William K. Wolfrum's picture

    William K. Wolfrum’s Morning – July 27, 2010

     


    Paul Briggs does an outstanding imitation of how the Obama Administration handled the Shirley Sherrod video nontroversy.

    William K. Wolfrum's picture

    British Petroleum Lobbied for Lockerbie Bomber release - oil for terrorists

    One must wonder if Republicans will be standing up for British Petroleum and their profits after this latest headline: “BP lobbied U.K. ahead of Lockerbie bomber release.”

    LONDON — BP confirmed Thursday that it had lobbied the British government over a prisoner transfer agreement with Libya in late 2007 before the release of Lockerbie bomber Abdel Baset al-Megrahi.

    William K. Wolfrum's picture

    Sea Turtles: Crazed Death Machines That Should Be Burned Alive

    If a Sea Turtle could, it would murder you with its bare hands. And liberal environmentalists would like nothing more than to allow this ancient species to gain the power they’ve always slowly plotted.

    Sea Turtles are often portrayed as wise, harmless keepers of the deep. But such a description couldn’t be further from the truth. The fact is this – Sea Turtles are monstrous man-eaters that make Great White Sharks look like otters.

    William K. Wolfrum's picture

    Jack Welch – a $700-million populist spokesman

    Jack Welch – former CEO of General Electric, Net worth, $720 million – had this to Tweet recently:

    I wish the President would stop dividing us..Every day he has a new villain..bank execs, insurance companies, doctors, hedgefund managersetc

    Doctor Cleveland's picture

    Libertarian Wonderland Is Not So Great

    It is a truth universally acknowledged that lower taxes and smaller government lead to economic growth, while higher taxes and bigger government hold the economy back. And like many truths that are universally acknowledged, it is frequently contradicted by easily observable facts and that makes no difference. Economics especially seems to be full of these ironclad universal rules that only hold true some of the time, in elegantly controlled micro-economic examples.

    William K. Wolfrum's picture

    InterOil (IOC): A (unreported) family affair?

    Not long ago, actor Shia LaBeouf, star of the upcoming “Wall Street II,” delved into the world of advising investors, as he had these kind words to say about InterOil:

    “IOC’s momentum is major, and it will surprise to the upside,” texted LeBeouf to a GQ writer.

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