D. McHattie

The Intrinsic Value of Nothing, Part 2

The author's point is precisely that money is not the root of all evil. Money is just a medium of exchange.

Paco may be misquoting but this is one of those expressions that is more commonly misquoted than quoted correctly. It does not at all detract from his thesis.


On Nov 03 09:53 AM Luke Skywooker wrote:

> people don't say "money is the root of all evil" they say
> "For the love of money is a root of all sorts of evil, and some by
> longing for it have wandered away from the faith and pierced themselves
> with many griefs."
> It's not a good idea to misquote and then build an argument on the
> misquote. Loving money does cause a lot of problems. Money itself
> is morally neutral.

What Happens If Roubini Is Right?

"[T]he Fed will soon cease to be a buyer of securities with freshly created dollars"?

With 10%+ unemployment?

Not bloody likely.

Any Fed statements to the contrary are nothing more than jaw-boning.

Stiglitz: Recession is Nowhere Near Over

I find Stiglitz' analysis is usually pretty good.

It's too bad that his recommendations are always to lower rates and spend ever more of my money.

How Much Did 'Cash for Clunkers' Cost?

White House economist Jared Bernstein: "In other words, I'm sure that some of those sales were pulled forward...we really need that growth now. Pulling sales forward is actually helpful."

This statement says a lot about this administration's approach to the economy.

Borrow growth from the future. Kick the can down the road. Cross that bridge when we come to it. Why do today what we can put off until tomorrow.

Is this administration so unforgivably stunned that it actually thinks this is a sound approach?

Shiller: More than Stimulus Driving Home Prices Higher

Your subject line is right, it's more than just the stimulus driving home prices higher.

Our culture has still not shed this irrational belief in homes as 'investments'.

If you listen to Shiller closely he says, statistically, home prices should continue to fall. What is driving the market higher is 'animal spirits'. In other words 'irrational exuberance'.

Sure, home prices could keep rising.

But ultimately they will have to fall.

It's all in the stats of incomes and rents, which do NOT support this level of home prices. End... of... story.

What the Solar Industry Wants in a Climate Change Bill

What kind of 'democracy' do we have when our votes no longer matter?

Regardless of who is in office, the only way to get legislation passed, even good legislation, is to hire and deploy more lobbyists. Which means money.

Sad but true.

On EESAT and Energy Storage Opportunities on the Smart Grid

JP, you've no doubt by now viewed the Envision video featuring an Axion battery as part of the overall 'Solar Tree' concept - what do you think?

It's nice to see a specific way in which Axion can capitalize if plug-in hybrids actually do become popular since we know Axion batteries won't be inside the cars themselves.

However, your research has shown us that plug-ins will not be much of a factor for at least 5-10 years.

This Envision SolarTree thing seems a little premature.

Housing Prices Up Again

"The acid test will be what happens to housing prices once that subsidy is removed."

Don't kid yourself, we'll never know - the $8k subsidy is now permanent.

Just like the mortgage interest deduction subsidy.

So are 3.5% down FHA mortgages permanent.

So is a high default rate on those FHA mortgages.

So is the Fed's program to buy all these default-bait mortgages.

Welcome to the new normal.

George Soros on the Dollar, China and Goldman Sachs

I don't always agree with Soros but when he comments on currencies I have to take note.

He is a billionaire precisely because of his currency expertise.

The USD is toast.

Roubini Hates Gold: Is He Wrong Again?

I agree with Manya: the author doesn't even acknowledge that gold and oil are not really going up so much as the dollar is going down.

A flight to the perceived 'safety' of the dollar also explains gold and oil's decline back in the spring.

With 10%+ 'official' unemployment, what are the chances this fed has the guts to raise rates to protect the dollar? Answer: 0.

FDIC head Sheila Bair warns community banks are struggling to compete against their too-big-to-fail rivals. "Too big to fail has become worse," she said, "it's become explicit when it was implicit before." Bair contends government guarantees create competitive disparities between large and small banks, because "everybody knows small institutions can fail," making it more expensive for them to raise capital and secure funding.

This is exactly what is wrong.

No government, no matter how well it did in school, can outsmart the immutable laws of economics and human nature.

D


On Oct 20 12:25 PM tunaman4u2 wrote:

> Its very true...
> The LAW of unintended consequences will show up over time as the
> Fed's arrogance in believing its manipulation of the market is effective.

Elizabeth Warren: 'Big Banks Always Get What They Want'

I can't agree with your assessment of Elizabeth Warren, Panda, but I suspect I agree with you on many other issues.

One big problem I see with getting people to realize the truth is that our political environment is so polarized that no one is willing to accept reasonable suggestions when they are suggested by the other side.

One thing Elizabeth Warren is NOT is a political hack. She is clear, straightforward and intellectually rigorous.

It is unfortunate that some solutions she proposes, such as a Consumer Financial Protection Agency, involve more government.

My preference would be for no government interference at all but the various incentives and disincentives, advantages and disadvantages of our byzantine regulatory structure force me to conclude that it would be easier, safer and more effective to add a little more regulation with some consolidation rather than try to disentangle the whole mess.

Like I say, I would choose to blow up the whole regulatory structure but I don't think it's realistic to believe that a majority of people will come around to that line of thinking anytime soon. We're too far down the rabbit hole.

Elizabeth Warren offers a workable, neutral compromise and she offers it in a package that just might win people over.

Elizabeth Warren: 'Big Banks Always Get What They Want'

If you did not hear anything thought provoking then perhaps you need to turn the volume on.

Did you notice that she actually suggested that taxpayer bailouts of foreclosures may not be the solution?

That is NOT a populist statement - that is a refreshingly pragmatic and courageous statement for someone whose background is supposed to be pretty left-wing.


D

On Oct 18 11:27 PM a fat panda wrote:

> Should be :
>
> I don't see anything thought provoking her comments. Her rethoric
> seems garden variety populism. Talking the playbook against the big
> banks plays well on TV. It is unfortunate that it has gotten so much
> air on this website.
>
> Before you say "Oh Lizzy! Save us." Keep in mind that she works for
> the dumb bastards who gave the big banks the money in the first place

Fed Vice Chairman Donald Kohn: Expects a gradual strengthening of economic activity, though employment remains quite weak; doesn't think a V-shaped recovery is likely, as credit remains tight, housing has oversupply and business has excess capacity. Deflation remains a greater risk than inflation.

Deflation of what? Inflation of what?

Unless you specify the good, service or asset, it is like predicting the weather will be cold without specifying where.

Level of Disagreement Among Economists Concerning Inflation Highest in a Decade

Our current conceptualization of inflation and deflation no longer applies.

We talk about them as though all assets, goods and services will experience the same upward or downward pressure on prices when this is not the case.

Some prices will go up and some prices will go down.

The discussion of inflation and deflation will only be meaningful if we make it specific to a particular asset class, group of goods or services.