Relevant and even prescient commentary on news, politics and the economy.

Why Can Asset Prices Fall

Robert Waldmann Brad DeLong boldly attempts to exhaustively list the factors which can affect the value of a fixed income asset. This is some Mac generated i document and I can’t cut and paste. Go here and search for “there are four”. The four are called “default”, “the safe real interest rate”, “risk”, and adverse […]

Income distribution and GDP, it matters

I should title this: Yeah, it is just like 1929 you freak’n see, hear and speak no inequality monkeys. I have this pile of income data sorted out from Saez’s work (the GDP is BEA). My thoughts regarding our economy is that income inequality (or equality) matters. It matters so much, that it is the […]

CEO Math

by divorced one like Bush Honda has done some math, Honda Motor Co. now expects 185 billion yen ($2.06 billion) in group net profit for the fiscal year ending March 31, 2009 — less than a third of the 600 billion yen it earned last fiscal year.For every yen the dollar declines, Honda loses about […]

Was GM et al asking for Central Planning (as in communism)?

by: Divorced one like Bush Ok, the auto CEO’s are all lined up. They get asked the populist setup question: Are you going to sell your jets? And they just sat there, as dumb looking as could be. They didn’t say a word. Not a word! To me, that proved they were the wrong people […]

Amity Shlaes: Sarah Palin with puffed up academic credentials

by divorced one like Bush Professor Krugman has been having problems with a person named Amity Shlaes. Well, actually he’s having a problem more with what she is professing. Amity is talking about The Great One’s relationship to today’s sickly economy and prescribing a plan of treatment. Doctor Krugman is noting the errors in Amity’s […]

A line of connection in experienced disconnected thought: Southern economic growth, anti-union, free trade job loss, today’s economy

by divorced one like Bushcaution, a long read I’ve been reading: Making Government Work by Ernest F. “Fritz” Hollings. Yes, that Hollings of Gramm and Rudman legislation fame. It is kind of rambling read, but I now understand why our congress of the democratic party side has been acting like moderate republicans and not liberal […]

It’s not that Schiff was so correct, it’s that the shows were so manipulative

by: Divorced one like Bush Crooks and Liar’s posted this video, but their presentation seems more from a position of how correct Peter Shiff was. I think what is more important, and a better lesson to learn is how much crap was being presented by Fox as real, reliable, truthful information that “you can use”. […]

Open Thread II: Treasury Boogaloo

Geithner it is. I guess we can pretend he’s not a Clinton administration alum. And he has the right experience: Though not an economist, Mr. Geithner has a deep understanding of monetary and fiscal policy and broad experience in international trade issues. Before the current crisis, he was involved in the bailouts of Mexico, Indonesia, […]