Marvin Clark

Here Come the Economic Clowns

Steven, this is an excellent analysis! You've written the article I wanted to write this weekend. A few additional clowns that will be appearing later this year at the economic circus: Nov./Dec. YOY jump in the CPI and PPI - will the media report or ignore this statistical aberration of gasoline? By year end 2008, here in Arizona, we were paying $1.55 a gallon for regular.

How will the media handle the doubling of the 30-Year T-Bond from the 2008 close of 2.50%

How will pundits dance around the fact that California's massive budget cuts (less spending and fewer jobs) represents 15% of the US economy?

The lack of earnings growth, rising interest rates, and higher inflation numbers should provide for a lively discussion around the Thanksgiving table.

Keep the Grey Goose next to the Black Swan just in case...

Cash for Clunkers May Cost Up to $45,354 Per Vehicle

This is a poorly thought-out, slanted argument conflating economics with political ideology. The suggested $20,000 - $45,000 suggested cost per transaction wildly inflated and is disingenuous.

Furthermore, cars do magically materialize into showrooms. They are transported from manufactures to dealers, creating jobs. They are detailed before being delivered, creating jobs. Salespeople are paid commissions; finance workers and offices workers process paperwork, creating jobs. Taxes are paid on new transactions. New cars aren't purchased and parked in garages. New owners take them out on the road and drive them. New owners drive to dinner, visit friends and family; take quick trips. They test drive their new purchase. The velocity of money increases. By the way, this is the point of the program.

We can debate the politics of spending money this way, but to state each car purchase can cost up to $45,354, without honestly accounting for any offsetting financial benefits, only government bashing, displays a lack of any serious critical thinking.