TinyTim

Buffett's BNI Purchase: Bearish Bet on the Economy?

BNI has good routes and is well managed, as Buffett obviously knows thru his past purchases. They have the opportunity to haul coal if needed.

I think Buffett is thinking more along the lines of cheap transportation during high oil price periods.
There are fewer more capital intensive industries in the US these days.
This is also a play on hard assets, considering the rolling stock, track and land that goes along with the purchase.

Does Anyone Actually Believe in Market Efficiency?

"“I was told that she was irascible, difficult, stubborn, unreasonable.”"

Notice no consideration of performance qualities like smart, experienced, good judgment, etc.

I saw that Frontline and Levitt later came back and commented on just how capable she was.

Breaking Up the Banks: How Likely Is Legislation?

"Sheila Bair “no, I don’t know how we would do that.”

Hell, just ask the Europeans.
This is all about regulatory capture.

Complex Motives Behind Buffett's Burlington Northern Buy

Anything is complex if you analyze it enough.

PG&E’s Smart Grid Challenges and Solutions by Region

Agreed.
Tang sounds like a marketing type.

"one of those cars can make up a load equal to the peak summer load of a typical household in the hot Central Valley "
BS- try an electric range or hot water heater

"Charge them at night, however, and the nation could manage charging of plug-ins equal to about 70 percent of its existing car fleet without adding a single new power plant,"

So which is it?
The obvious solution is a separate meter for electric cars to ensure night charging. Meters are cheap.

Intel’s Home Energy Management Plan, Part II

I've been looking at home automation at CES for 30 years.
I doubt HEMS will be the driver.
As would be expected, Intel has had many miscues.
The main energy users in the home are- HVAC, hot water, (pool pump), refrigerator. They can all be automated with cheap timers, thermostats, etc. or made more efficient.

The remaining energy- lights, cooking is a smaller fraction and easily manually controlled.

Smart meters and the daily energy consumption feedback provided are useful and interesting. Until utilities require time-of-use rates, not much will happen and even then, the cheap simple controllers will handle most of the load and create most of the savings. There has to be an economic incentive like rate structure.

A similar thing happened a few years ago with residential demand controllers, a fairly expensive and complex piece of equipment. The market was entirely driven by the residential demand rate one local utility issued, and dried up when the rate went away.

An interesting aspect of smart meter feedback is that for people on tight budgets, the advantage is knowing exactly how much the bill is going to be well ahead of time, as opposed to saving energy. The point is that knowledge may not influence conservation actions, especially for a renter.

Why There Can't Be a Cap on Bank Capital Ratios

"the risk to the taxpayer associated with any given bank grows exponentially with that bank’s size. "

My impression was the cap ratios were just that- ratios, and the actual capitalization required would increase with the bank size.

You intimate a single step-wise ratio.
Based on your quote above, they're all a bad idea if risk is exponential.

Based on other factors, such as interconnectedness, fianancial environment and management, the actual required capitalization would probably be prohibitive to maintain.

There's no substitute for busting up the banks.
A sliding cap rate based on size would add a measure of safety.
I would forget the other factors as regulators would probably not be successful with them.

Photographers Are Not Authors, Says Judge in Google Book Case

No good deed goes unpunished (twice)

128 of the Top Financial Blogs

thanks for the tip.
Ya just gotta love the web.

Breaking Up the Big Banks: Ackermann vs. Hoenig

Thanks for the well supported article.
I especially appreciate the arguments against Too Small To Compete, which is the only reasonable objection to a bank busting policy.
The only real issue now is how to escape regulatory capture and get it done.

Financial World: Atlantic Widens While Pacific Narrows

The irony here, which I'm sure isn't lost, is that the European countries have had a long standing rep as being politically liberal and economically socialist. In other words, leaning to the left.

The US, on the other hand, is demonstrating by its actions so far that it is further left than the Europeans. This has the same impact as a recent news story about an American Army officer in Afghanistan commenting on the toughness and perseverance of the French forces assisting there.

It should be well noted that the dichotomy is only in the financial area, and specifically in banking. It's no coincidence. Contrast with the current health care debate, comparisons with many European countries and screams of socialized medicine.

What is obvious to the Europeans, that smaller banks are less risky and cutting out the bad to leave the good, seems to be a blind spot for Congress and the Administration.
Is there any doubt that this is evidence of regulatory capture?

The Fed and Executive Branch's Creeping Power Grab

"I hope an appropriate restoration of the checks and balances laid out in the Constitution can be restored. "

Interesting quote, considering no one has rewritten the Constitution. This implies that there are a lot of derived laws and / or policies that are illegal.

The Current Baseline Scenario for the U.S. Economy

Makes perfect sense to me.
A great read and excellent testimony.

As you were delivering this expert advice to the Joint Economic Committee of Congress, what was their response to hearing what they know and need to act expeditiously on, but did not want to hear?

Should We Give the Fed More Power...Or Maybe Less?

Yes, it is obvious.
The Fed's mandate is to control prices and employment by regulating the money supply.

A buck is now worth 5 cents since the Fed started, and unemployment is at 80 year highs, I would say they have failed miserably and should be taken out and shot.

Is This the End of 'Too Big to Fail'?

"This should result in large amounts of "social pressure" to stop stupid actions, since the risk of them can fall on other large market participants."

LOL Social pressure versus greed and competition.
No contest.