Lance on Oct 12 2008 | Filed under: Economics, Lance's Page
Yves Smith hits a theme I have been harping on, the Federal Reserve, and central banks in general, are making things worse in may ways by destroying the incentive for banks to lend or borrow from one another. She quotes James Bianco of Arbor Research:
The Fed’s massive and numerous liquidity facilities are making things worse. [...]
Lance on Oct 10 2008 | Filed under: Economics, Foreign affairs, Investing, Lance's Page
The Markets have spoken, the best place to invest in the world is…Iraq!
Now it’s stock and awe in Baghdad!
As the Dow plummeted nearly 700 points yesterday to fall well below the 9,000 mark, the Iraqi stock exchange - where this broker was merrily keeping up with her booming business - was flourishing, buoyed by four-year [...]
Lance on Oct 02 2008 | Filed under: Economics, Lance's Page
I have argued in the past that the Federal Reserve’s policies may be helping in some ways, but hurting in others. Way too much borrowing and lending is running through the Fed which is drying up lending between banks. It also reduces the need for banks to find reasons to communicate and trust each other, [...]
Lance on Oct 02 2008 | Filed under: Domestic Politics, Economics, Lance's Page, regulation
Tyler Cowen states his basic views on the crisis. My response in italics:
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Lance on Oct 02 2008 | Filed under: Economics, Humor, Investing, Lance's Page
A new distressed debt leveraged hedge fund has been launched:
Go visit the website for all their competitive advantages!
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Lance on Oct 01 2008 | Filed under: Domestic Politics, Economics, Lance's Page
Let us look at one of the ways that we are being panicked unnecessarily, and why incidentally we can help many of these financial institutions in the fashion I discussed in my post on a potential alternative plan. In my next post we will discuss ways in which we are not being misled, and why [...]
Lance on Oct 01 2008 | Filed under: Domestic Politics, Economics, Lance's Page
I do believe we should be doing something as a nation, through our government, to avoid the not insignificant chance of a total financial meltdown. I have seen several things proposed that I find interesting, and I will get into them and other longer term issues in coming days. I had hoped to address this [...]
Lance on Oct 01 2008 | Filed under: Domestic Politics, Economics, Lance's Page, taxes
If you support the Paulson bailout plan that is. The New York Times has coverage.
The Senate proposal would cost more than $100 billion and extend and expand many individual and business tax breaks, including tax credits for the production and use of renewable energy sources, like solar energy and wind power.
The bill would also extend [...]
Lance on Sep 30 2008 | Filed under: Economics, Lance's Page
The Federal Reserve has for a long time eschewed increasing the money supply directly, and instead has manipulated credit to affect the economy and control inflation. This has led to three important things which are in my opinion at the root of this crisis.
Asset price inflation (at least initially) as opposed to broader price inflation.
A [...]
Lance on Sep 29 2008 | Filed under: Domestic Politics, Economics, Lance's Page
I was not in favor of the Paulson plan if you haven’t caught that yet. Still, the pitiful display from our congress today set a recent low.
First, faced with an unpopular and contentious bill which she feels for the good of the nation must be passed, we get a partisan and divisive speech from Nancy [...]
Lance on Sep 29 2008 | Filed under: Investing, Lance's Page
If they did, then they wouldn’t have banned short selling. People may have noticed that the ban hasn’t helped, and today we see one of the real costs.
See, when markets collapse like today, short sellers dive into the market to cover their short positions, in these times they are often the only ones buying. [...]
Lance on Sep 29 2008 | Filed under: Economics, Lance's Page
Larry Summers and Mark Thoma argue that if done right the bailout will mean we can solve this crisis and still have everything we want, tax cuts, health care spending and all kinds of other goodies. Larry argues:
Just as a family that goes on a $500,000 vacation is $500,000 poorer but a family that buys [...]
Lance on Sep 22 2008 | Filed under: Domestic Politics, Lance's Page
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Lance on Sep 21 2008 | Filed under: Domestic Politics, Economics, Lance's Page, Law, regulation
Continuing the discussion on tonight’s podcast, one of the recurring themes of much of the commentary on our current financial crisis is that the cause is too much deregulation. Possibly there is some truth to this, though the evidence is rather vague. The most disturbing figure in all this is Barney Frank.
“We need stricter standards [...]
Lance on Sep 18 2008 | Filed under: Domestic Politics, Economics, Investing, Lance's Page
The hedge fund industry is feeling gloomy, and so is Mayfair.
Meanwhile our government is considering following London’s lead and making their lives even more difficult, by banning short selling for a while. Yep, Fannie would have been just fine with mismatched liabilities, toxic assets and corrupt accounting mixed in with 40-1 leverage if nobody had [...]
Lance on Sep 17 2008 | Filed under: Economics, Investing, Lance's Page
Today the Fed went to the Treasury and asked for a line of credit. You know, the lender of last resort has had to turn to our Treasury to protect their balance sheet.
Want to see something weird. Go here and look at the treasury market. In the bond world, a 1% move is huge. [...]
Lance on Sep 12 2008 | Filed under: Humor, Lance's Page
From Craigs List, though it has since been removed:
H/T- Alphaville
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Lance on Aug 24 2008 | Filed under: Lance's Page, taxes
And millions of us may benefit.
The dispute arose when more than 30 mutual life insurance companies became publicly traded corporations in the late 1990s and earlier this decade, in a process known as “demutualization.”
Mutual companies are owned by their policyholders, so the companies provided stock and cash to compensate them for the loss [...]
Lance on Aug 23 2008 | Filed under: Lance's Page, Music
A treat for Velvet Underground fans, Bud Benderbe reinterprets the seminal alternative band:
More over at Airforce Amazon.
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Lance on Aug 17 2008 | Filed under: Domestic Politics, Election 2008, Lance's Page
That is the Obama campaigns response to McCains surprisingly (in their mind) strong performance in last nights Saddleback Civil Forum on Presidency
McQ finds the charge another in a long line of examples of misunderestimation by Democrats. I like this line from McQ:
First, you have to love the reemergence of “nuance”. Barack Obama was too [...]
Lance on Aug 14 2008 | Filed under: Economics, Humor, Lance's Page
FROM: Dr Ben Bernanke
Central Bank of United States of America
01-658-555-1234
TO: CEO
Lagos, Nigeria
Dear Friend:
I have been requested by the regional members Federal Reserve of the USA to contact you for assistance in resolving a matter. The Federal Reserve of the USA has recently concluded a large number of contracts for credit derivative investment vehicles “CDIV” in [...]
Lance on Aug 10 2008 | Filed under: Foreign affairs, Lance's Page
Joshua hasn’t disappeared, he just isn’t gracing us with his opinions on the conflict in the Caucasus, but you can find them at Registan.net, here and here.
Heh, Insty links to him, but describes it as peevish (Josh? Peevish? Also, by linking to him kind of undercuts Josh’s complaint.) Great surprise, but Joshua makes a few [...]
Lance on Aug 10 2008 | Filed under: Foreign affairs, Lance's Page
Zbigniew Brzezinski strikes a note from our discussion on tonights podcast and compares the invasion of Georgia with Stalin’s assault on Finland. If Georgia can hold up the military end of that analogy it would be quite impressive. I am not holding my breath.
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Lance on Aug 10 2008 | Filed under: Foreign affairs, Lance's Page
McQ, Dale and I discuss the Russian campaign against Georgia over South Ossetia.
Generally I feel that our support should belong to Georgia. However, Georgia has severely miscalculated in this matter, and frankly our options are limited. At best, we get a negotiated settlement with Russia that retains Georgian sovereignty with the loss of Abkhazia and [...]
Lance on Aug 05 2008 | Filed under: Economics, Lance's Page, Philosophy
Alex Taborrak has a story:
How an Economist Thinks
Over the weekend a crew came round my neighborhood offering to paint house numbers on the curb. Large bold curb numbers, they pointed out, make it easier for emergency service workers to find houses in the dark. Good argument. The price was good too. [...]
Lance on Aug 03 2008 | Filed under: Domestic Politics, Economics, Lance's Page
On tonights podcast at QandO, I called in at McQ’s request to discuss the economy. One of the things we discussed was the likelihood of our government continuing to bail out our financial institutions. For a number of reasons that will be problematic.
Of interest is how many institutions are likely to fail?
One way to look [...]
Lance on Aug 03 2008 | Filed under: Culture, History, Lance's Page, Religion and theology
The impact of this man on the world is not part of the memory of many today. I’ll be breaking out a few of his books this week in his memory. A true Giant has passed away.
Aleksandr Solzhenitsyn, whose stubborn, lonely and combative literary struggles gained the force of prophecy as he revealed the [...]
Lance on Aug 03 2008 | Filed under: Lance's Page, Photography, science
A simply stunning series of pictures of Jupiter and its moons. Lots more at the link.
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Lance on Aug 03 2008 | Filed under: Domestic Politics, Foreign affairs, Glenn Greenwald's Carnival of Fisking, History, Lance's Page, Media, Notes on the war
After 9/11 itself, the anthrax attacks were probably the most consequential event of the Bush presidency. One could make a persuasive case that they were actually more consequential.
You could?
The 9/11 attacks were obviously traumatic for the country, but in the absence of the anthrax attacks, 9/11 could easily have been perceived as a single, isolated [...]
Lance on Aug 02 2008 | Filed under: Developmental economics, Economics, Lance's Page
I think this is a fascinating blog, Creative Capitalism. Of Course, I am a geek.
Creative Capitalism: A Conversation is a web experiment designed to produce a book — a collection of essays and commentary on capitalism, philanthropy and global development — to be edited by us and published by Simon and Schuster in the fall [...]
Lance on Aug 02 2008 | Filed under: Domestic Politics, Environment, Lance's Page, energy
Pelosi says, “I’m trying to save the planet; I’m trying to save the planet.”
Charles Krauthammer points out the incoherence of this:
Does Pelosi imagine that with so much of America declared off-limits, the planet is less injured as drilling shifts to Kazakhstan and Venezuela and Equatorial Guinea? That Russia will be more environmentally scrupulous than we [...]
Lance on Aug 01 2008 | Filed under: Lance's Page, Milton Friedman Memorial Page
It is Milton Friedman’s birthday! For all kinds of coverage, go to my Milton Friedman Memorial page. Scroll to the bottom and there is a huge collection of thoughts on his passing. Here is one of my favorite bits:
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Lance on Aug 01 2008 | Filed under: Domestic Politics, Election 2008, Lance's Page
EJ Dionne thinks McCain is blowing it:
By running an attack campaign that is almost a parody of George W. Bush’s 2000 and 2004 exertions, McCain is chucking away his greatest opportunity, which is to show that he could reform Republicanism and offer voters an alternative way of breaking with a past they have come to [...]
Lance on Aug 01 2008 | Filed under: Domestic Politics, Lance's Page
I don’t do much union bashing, but Retief has inspired me. In Montgomery, the Police Union is standing in the way:
FOR MORE than a decade, state, county and municipal police departments across the country have been shifting to the use of audio-video recording devices in their patrol cars as a means of enhancing accountability. The [...]
Lance on Aug 01 2008 | Filed under: Domestic Politics, Election 2008, Lance's Page
I don’t think McCain is being particularly nasty to Obama (nor Obama particularly nice) but I think Daniel Larson hits the nail on the head here:
Indeed, to the extent that his agreement with the administration on many major policies is acknowledged, it is usually framed as part of a story of how the “real” McCain [...]
Lance on Aug 01 2008 | Filed under: Domestic Politics, Humor, Lance's Page
I still hate the housing bill.
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Lance on Jul 31 2008 | Filed under: Foreign affairs, Lance's Page
From the NYT:
American intelligence agencies have concluded that members of Pakistan’s powerful spy service helped plan the deadly July 7 bombing of India’s embassy in Kabul, Afghanistan, according to United States government officials.
The conclusion was based on intercepted communications between Pakistani intelligence officers and militants who carried out the attack, the officials said, providing the [...]
Lance on Jul 31 2008 | Filed under: Humor, Lance's Page
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Lance on Jul 30 2008 | Filed under: Lance's Page
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Lance on Jul 28 2008 | Filed under: Domestic Politics, Economics, Lance's Page, Media
For those of you who love New York Times bashing, I am in rant mode at Risk and Return. What a bunch of balderdash.
Also, if you want a good idea of where housing prices may go, I also have this. Charts, I have lots of charts!
Finally, I really hate the housing bill.
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Lance on Jul 28 2008 | Filed under: Economics, Environment, Lance's Page, energy
I know that many of you think that global warming, at least anthropogenic global warming, is a fraud. I am not so sure. Either way though, I think Peter Huber has the broad contours of any attempt to address it correct.
So does the climate computer have a real audience, or is it really just another [...]
Lance on Jul 28 2008 | Filed under: Domestic Politics, Humor, Lance's Page
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Lance on Jul 27 2008 | Filed under: Foreign affairs, Humor, Lance's Page
Obama makes his first effort at diplomacy with the Palestinians. The response:
F- - - Washington, f- - - Obama and f- - - you.
I feel encouraged, how about you?
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Lance on Jul 27 2008 | Filed under: Domestic Politics, Lance's Page
Over at QandO, Bruce, Dale,and I discuss Sen. Obama’s hubris, his fawning press coverage, and his inability to admit his error in opposing the surge.
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Lance on Jul 27 2008 | Filed under: Foreign affairs, Lance's Page
Having checked out of politics until the last few days, I certainly haven’t been keeping up with what is going on across the pond (outside of following how bad the economic slowdown may be.)
Reading Guy Hebert things seem to be getting truly and astonishingly ugly for Labour. Does that mean the Conservatives once they seize [...]
Lance on Jul 27 2008 | Filed under: Foreign affairs, Lance's Page, Notes on the war
The irreplaceable Michael Totten is now in the Balkans tracking down the influence of al Qaeda and the mujahideen. They seem to be having trouble inculcating their values.
Exhibit 1:
“Most people know nothing about your country,” I said to Fana and Lumnije.
“The majority of us would not like to be perceived as a Muslim country in [...]
Lance on Jul 27 2008 | Filed under: Domestic Politics, Election 2008, Foreign affairs, Lance's Page, Military Matters, Notes on the war
From The Huffington Post, where this kind of BS is applauded:
“Quit talking about, ‘Did the surge work or not work,’ or, ‘Did you vote for this or support this,’” Hagel said Thursday on a conference call with reporters.
“Get out of that. We’re done with that. How are we going to project forward?” the Nebraska senator [...]
Lance on Jul 27 2008 | Filed under: Lance's Page
First, I want to apologize for the server problems the last week. They have been fixed, though we lost a few days worth of posts. The bright side? A brand new server, which should mean better, faster, performance.
In other news, I should be back blogging a lot more going forward. Also, like Michael, I have [...]
Lance on Jul 27 2008 | Filed under: Culture, Humor, Lance's Page, Media
I am co-bloggers Keith and Josh will be thrilled to know that Vanity Fair now has a gay car blog.
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Lance on Jul 27 2008 | Filed under: Domestic Politics, Lance's Page, Law
You may not realize this, but the House Judiciary Committee has been holding hearings (of a sort) in an attempt to impeach President Bush. Guys, he is gone in six months. I love this line:
“I am really astonished at the mood in this room,” commented one witness, George Mason University School of Law professor Jeremy [...]
Risk and Return Multinational Force-Iraq QandO