Category Archives: Economics

Anders Aslund on the Russian Economy

After forcefully savaging the Russian invasion of Georgia, controversial Swedish economist Anders Aslund lays out ten reasons he expects an impending economic collapse in Russia. Each point is sound, although some are more problematic than others. Particularly cogent are the … Continue reading

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Dissecting Subprime – A lesson learned

The Economist Interesting article about the roots of the problem. What I found fascinating was this root cause. the historical accident of a very low loss rate during the early history of subprime mortgage foreclosures in 2001-2002. This is the … Continue reading

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Bernanke has a solution

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. … Continue reading

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Free Riding?

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 … Continue reading

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Fail Early or Don’t Fail at All

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 … Continue reading

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Creative Capitalism

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 … Continue reading

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Colombia’s Capitalist Communes

Colombian flower farms (photo: Mike Freedman-Schnapp) Colombia’s flower farm workers have for some time been benefiting mightily from industrial support communities, which practice heavy nongovernmental social investment in workforce collectives. Many of the workers in these communities outside Bogota and … Continue reading

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On that “Permanent Underclass”

Kind of an interesting little chart. Is it conceivable that most of our political narratives are nonreflective of economic reality? Don’t answer that. (Investor’s Business Daily)

Posted in Economics | Tagged , , , , , , | 23 Comments

How Supermarkets Can End Poverty

Namibian supermarket selection (photo: Olivier Peyre) One of great inequities in the modern world is that in relative terms, food in poor and starving countries often costs far more than in the wealthy developed world. That’s because industrial countries tend … Continue reading

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Peter Pan America

Growing up means accepting responsibility for your actions and attempting to make wise decisions as much as possible.  Peter Pan rejected this; he didn’t want to grow up and lose the carefree, irresponsible days of youth. Too often, it appears … Continue reading

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Viral Wal-Mart

Anti-Wal-Mart hysteria seems to have curiously abated somewhat since the corporation started giving more generously to the Democratic Party. Not an uncharacteristic phenomenon for the centralized extortion tactics –er, “grassroots activism” of such campaigns. But there are still some people … Continue reading

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The Muffin Mogul

The power of capitalism in a lovely little ad by Nexus Productions for the Royal Bank of Canada: Quicktime Video via Motionographer. ||

Posted in Economics, Lee's Page | Tagged , , , , , | 2 Comments

Investing at Home in Africa

(photo: William Bedzrah) One of the traditional problems of economic development in sub-Saharan Africa is that internal African investment dollars tend to be spent outside the continent. Thus it’s interesting to see Nigerian investment in Ghana has now reached $580 … Continue reading

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Select Rants

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 … Continue reading

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An Inconvenient Truth for Al Gore and Friends

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 … Continue reading

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Greg Mankiw for President

Is it really too late for him to be a candidate? Too bad. Mankiw’s platform surely would be our nation’s best. Mankiw coyly calls it “pandering.”  I call it a breath of fresh air – along with refreshing rationality. No wonder … Continue reading

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McCain takes a stand against Fannie and Freddie

McCain takes a stand against Washington’s biggest example of “crony capitalism:” What should be done? We are stuck with the reality that they have grown so large that we must support Fannie Mae and Freddie Mac through the current rough … Continue reading

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Free To Fail

As anyone who reads my blog knows, I love competition.  Bridge is all about using your mind and creativity to best advantage – and then hoping that you can best the opponents due to it. In America, we’ve always been … Continue reading

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I love this map

The one right here. Here is a picture, but the real one is cool, cool cool. You can find other maps like this here.

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The Horse is out of the Barn

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How big a mess are we in?

Certainly not one our Congress can’t make worse. We have a market where housing prices are in free fall, where the last thing we want shaky institutions to have more exposure to is mortgages that are almost guaranteed to be … Continue reading

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The Amoral Nature of Moral Hazard

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You Walk Away Hits Television

Cross posted at Risk and Return You may remember the website we discussed back in January. Dale Franks just discovered their program, because they now are on Television. He asks the obvious question: So, should the mortgage companies get off … Continue reading

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The Economy Makes Me Nervous As Well

Yeah, this is kind of funny, if in a dancing on gravestones kind of way. I hate to continue to beat an old drum, but the economic data is showing far less stress than is actually out there. Employment is … Continue reading

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Elect Phil Gramm!

From an interview by Stephen Moore (HT: GR): So what if a President Barack Obama were to impose 50% or 60% tax rates on these CEOs and other big earners? Mr. Gramm pounces: “When you help a company raise capital, … Continue reading

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Is The Evidence In On Minimum Wage?

When the most recent unemployment numbers were released, the media bleated about the highest percentage increase in the jobless rate since 1986. For example, The New York Times lamented: The unemployment rate surged to 5.5 percent in May from 5 … Continue reading

Posted in Domestic Politics, Economics, energy, Media, MichaelW's Page, regulation | Tagged , , , , , , , , , , | 6 Comments

Fashion Is Cheap

How remarkable: As luxury fashion has become more expensive, mainstream apparel has become markedly less so. Today, shoppers pay the same price for a basic Brooks Brothers men’s suit, $598, as they did in 1998. The suggested retail price of … Continue reading

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Congress Critters

Buy a second house in Sacramento with no money down for 535k even as housing is going down in price. Run for congress. Need money for campaign, but can’t do that and make mortgage payments on a house losing value. … Continue reading

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“Those poor school kids didn’t hire the right lobbyist.”

Congress is behaving atrociously: cutting assistance to hungry children abroad right when food prices are spiking, and preventing competition amongst our sugar producers. There’s more, of course. I normally scoff at the talk of “lobbyists” and “special interest groups.” I … Continue reading

Posted in Domestic Politics, Economics | Tagged , , | 1 Comment

The Other Credit Shoe Drops

If being upside down on your mortgage isn’t bad enough, consider how many people are into large pickups and SUVs for more then they are worth. And now with gas prices climbing they want to get out of them. The … Continue reading

Posted in Economics, energy, Keith's Page | Tagged , , | 1 Comment

Middle Class Burdens

Thanks to Don Boudreaux, I found this “Inconvenient Truth” about the struggles of the middle class. As readers here know, I have long been a bear on housing, but as always those who want their hands on our wallet can … Continue reading

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Stop the Madness

Sooner rather than later. And this: Perhaps turning food into transportation fuel would make sense if massive amounts of grain spoiled every year from a lack of demand, but that certainly isn’t the case. Farmers love the higher prices that … Continue reading

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Teach Your Children Well

From a Wall Street Journal reader: “The courageous thing for Congress to do would be to get rid of student-loan subsidies entirely. Then watch tuitions tumble towards ‘the affordable’ as academe realizes nobody’s throwing money at it any more.” – … Continue reading

Posted in Domestic Politics, Economics, Education | Tagged , , | 1 Comment

I’m with Senator Obama

At least on this topic. Economists in general oppose a tax holiday because it would encourage consumption of gasoline at a time of soaring demand. Billionaire oilman T. Boone Pickens, a longtime Republican donor, criticized Sen. McCain’s policy in an … Continue reading

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Surgery on the Middle Man

We all expect to eat – but we don’t get insurance to guarantee food.  We all need various sorts of transportation.  But, other than some insurance to cover the value of a valuable vehicle, we don’t need insurance to make … Continue reading

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Silent Tsunami

As an update to this previous post, be sure to read this from The Economist. Governments ought to liberalise markets, not intervene in them further. Food is riddled with state intervention at every turn, from subsidies to millers for cheap … Continue reading

Posted in Developmental economics, Economics, Peg's Page | Tagged , , , , | 4 Comments

As Ye Sow

So shall ye reap.Am I the only one who finds massive government interference in agricultural markets to be insanity? And, surely our own nation’s recent love affair with ethanol is a significant contribution to world wide inflationary food costs – … Continue reading

Posted in Domestic Politics, Economics, Peg's Page | Tagged , | 5 Comments

Consumer Spending is Ugly

While spending increased in March by 1.8% over a year ago, adjusted for inflation it was way down. The only reason sales were positive was gasoline, though food sales were positive. Even there, that is mostly due to inflation and … Continue reading

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Ripple Effects in the Food Trade

Posted first at Registan.net When last I touched on the global food crisis and how it is impacting Afghanistan and the rest of Central Asia, I noted that countries continuing to ban wheat exports would make the problem worse by … Continue reading

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The Politics of Condescension

Given the discussion at this post about Obama’s condescension, I suggest Tom Maguire’s roundup of the coverage of Obama making the mistake of speaking his mind about the rubes who he needs to vote for him: I can’t believe that … Continue reading

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What Does Wheat Mean?

Cross-posted to Registan.net, which also has lots of other commentary, news, and analysis from and about Central Asia. Paul Krugman had a mostly-good column in the New York Times the other day, exploring the world food crisis. After digging through … Continue reading

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Are we in a recession yet?

Personally I think we have been negative since November. Given the large positive number in the third quarter, the barely above break even number in the fourth quarter virtually guarantees that the economy went negative sometime in November and December. … Continue reading

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Perspective

Germany is optimistic it has reduced its unemployment to 3.5 million. According to the Bureau of Labor Statistics, U.S. unemployment is down in February to around 7.3 million. For comparison’s sake, Germany has around 82 million people. The U.S. has … Continue reading

Posted in Around the Web, Economics | 2 Comments

Why grow poppy?

Posted first on Registan.net, this is the latest in a series I’ve been writing there for the past two years on the many problems with our counternarcotics operations in Afghanistan, and how bad policy has fueled the insurgency to record … Continue reading

Posted in Economics, Foreign affairs, Notes on the war | 1 Comment

Path to a Depression

Some interesting parallels with our current situation and the period before the Great Depression. Interestingly, it seems the Democrats are intent on not learning from history, at least not about what led us to the Depression. Or maybe they want … Continue reading

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Geldof and Bush: Diary From the Road

A short portrait of President Bush from Sir Bob Geldof, on the Presidents recent trip around Africa. Really shows what we’ve been accomplishing in Africa the last several years. In 2003, only 50,000 Africans were on HIV antiretroviral drugs — … Continue reading

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The Nationalization of the Housing Market

Regular readers know that I have been harping on the likely collapse in housing since this blog began. At this point I am hardly an outlier in being concerned, which means now the politicians and experts are ready to ride … Continue reading

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The Sickening

A Cuban medical office with a sign reading “No prescriptions available.” Photo by: Dr. Darsi Ferrer [via The Real Cuba]. News of Fidel Castro’s retirement has elicited some interesting responses. Chris Bertram’s has to be one of the most arrogant … Continue reading

Posted in Economics, Education, Foreign affairs, Health Care, MichaelW's Page | Tagged , , , , , , , , , | 2 Comments

Economic Incoherence

Robert Reich gets his clock cleaned in very few words by Donald Boudreaux: At least a full-sized op-ed is required to address the many wrong-headed presumptions, factual errors, and non sequiturs that mar Robert Reich’s “Totally Spent” (February 13).  The … Continue reading

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Assasination and Democracy

The Bayesian Heresy tipped me to a profile of economist Ben Olken, who has published a couple of papers on the effect of political leaders on economic and political development: Olken wonders whether economic devel­opment and the path to democratization … Continue reading

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