Wednesday, December 31, 2008
Monday, December 29, 2008
Let's look at this one again: This seems to be the best and only way forward for the US auto industry.
Sunday, December 28, 2008
Friday, December 26, 2008
Wednesday, December 24, 2008
I realize things are bad. But never let the world get you down so much as to not take the time to admire beauty.
Tuesday, December 23, 2008
This video may not be suitable for our more sensitive viewers or for those who do not wish to see a terrorist about to launch a rocket propelled grenade at our brave service men get whacked by our brave leathernecks.
Macroeconomics in action because it is your tax money.
Monday, December 22, 2008
Sunday, December 21, 2008
Saturday, December 20, 2008
Friday, December 19, 2008
Thursday, December 18, 2008
Wednesday, December 17, 2008
Here is an mp3 of a speech I gave at Rhodes College last March entitled "The Great Depression and Modern Business Cycles". I promise I will break everything down in this speech in greater detail over time. I hope you learn something and even better have some fun while you listen. It takes about a minute and a half to download and the speech with questions and answers is a little over an hour.
Perhaps of some value.
Tuesday, December 16, 2008
Monday, December 15, 2008
Saturday, December 13, 2008
Friday, December 12, 2008
Thursday, December 11, 2008
Table 1. Estimated Size of the Global Asset-Backed Securities (ABS) Securitisation Market, Classified by Collateral Employed (in billions of dollars)Prime Mortgage-Backed Securities
Subprime Mortgage-Backed Securities
Commercial Mortgage-Backed Securities
High-Grade Corporate Debt
High-Yield Corporate Debt
Collateralized Debt Obligations
Collateralized Loan Obligations
Source: Compiled from a variety of sources including Goldman Sachs, JP Morgan Chase & Co, Lehman Brothers, Markit.com, Merrill Lynch and IMF Staff estimates.
Wednesday, December 10, 2008
Tuesday, December 9, 2008
Monday, December 8, 2008
From Phil Rothman:
Sunday, December 7, 2008
Saturday, December 6, 2008
Friday, December 5, 2008
Thursday, December 4, 2008
Jim Hamilton tells you what you need to know. Listen to this and you will know what to think. Click on the link below and then click on the podcast.
Wednesday, December 3, 2008
I apologize for the photos, but you need to be aware of the pure evil mindset we are confronting. I hung out with a bunch of muslims in graduate school. I asked why they all had beards? They told me it was the way of the prophet Mohammad and to also tell yourself apart from a woman. I asked if they really needed a beard to tell the difference between a man and a woman? I assume the acid bath will now help the differentiation process along.
This is disgusting, pathetic, and sub-human.
Tuesday, December 2, 2008
That's a good idea...so here is Part I of what will be an extensive and multi-entry posting. I hope you enjoy the ride, we have a ways to go.
Let's start at the start...reason number one for the Great Depression can be placed at the feet of World War I. It is somewhat disturbing to read original historical documents from this era as they only refer to "The War". Of course they did not know about the wars to follow as this was to be the war to end all wars. The carnage is ghastly and ghoulish to reflect upon. In a major battle such as the Battle of Verdun, over one million casualties occurred as the weapons of modern warfare had advanced but the tactics of battle had not. It was a machine gun war with Civil War tactics.
Anyway, the social, political, financial and economic upheaval that resulted from WWI was never to be replaced after the war was over. The world had changed drastically but all the world's leaders wanted to do was go back to the pre-1914 days where all believed it was a better world. The only trouble was there was no piecing it back together. The mechanisms in the pre-WWI world that promoted stability, such as flexible wages and prices and cooperation and coordination amoung countries on the gold standard were nowhere to be found after 1918. So the leaders around the globe went reaching for what they knew and set the world up for the next calamity. Most all countries set about restoring the gold standard after it had been suspended during WWI, and the seeds for the coming Depression had been sown.
Here is a nice summary of this very topic in an exchange I had with Peter Temin in my second book:
Randall Parker: If I could try to sum up, if you’ll indulge me, we can break it down later if you want. One of the major un-doings was the shock from World War I and the Depression should be viewed in the context of the overall second Thirty Years War trying to re-establish the status quo ante in a changed world leading to contraction and a sustained downturn. World War I was the shock and the propagating mechanism was the gold standard. The resumption of the gold standard announced the continuation of the policy regime that existed before the War. But more than this, it was the fundamental adherence to the gold standard mentality, that it was a prerequisite for prosperity, that actions outside of it were not in the realm of discussion and were not taken seriously and that deflation was the prescription and the only way to cope with falling demand. This mentality and the universal commitment to this system, and thus the difficulty for any one country to take independent action, determined the depth and severity of the Depression and drove the world economy into the ground. Does this about sum it up?
Peter Temin: Yes. I think that’s quite a good summary.
The re-establishment of the gold standard brought about the recession of 1920-1921 and that recession was reason number two for the Great Depression. We shall have more to say in this regard in my next Great Depression posting.
For anyone with an interest in a deeper analysis, Peter Temin's Lessons from the Great Depression and Barry Eichengreen's Golden Fetters are two books that are not to be missed.
And anyone who wants to read a debate I got into with CNBC's Donald Luskin about re-establishing the gold standard (I took the "no" side) can follow that debate here:http://www.opposingviews.com/questions/should-the-us-return-to-the-gold-standard
Monday, December 1, 2008
From Jim Hamilton...
The Japanese would not do this and paid a big price. We need to do it and now. Another month of deflation and it will certainly focus the mind.