Gary Gorton speaks...time to listen. There is no one of greater value speaking on the financial system today.

http://www.minneapolisfed.org/publications_papers/pub_display.cfm?id=4596

Bad placement and bad spelling.

Time Machine: That's me playing lacrosse and hanging out in some Wisconsin beer joint in college circa 1982.

For those of you have been to Wisconsin, especially cities like Madison and White Water, there is a bar on every single corner in every neighborhood. We just played a lacrosse game so me and the boys went to wet our whistles....28 years ago.

Very Merry Christmas to you all.

What a surprise this old boy has coming....

As dumb as they come. Cigarettes are OK for the fetus but jack hammers...NO!

Time to have a debate about gold's role in the world monetary system. NUTS! End of debate.

And Congressman Ryan needs to shut up about it too.



http://www.businessweek.com/news/2010-12-09/more-than-half-of-americans-want-fed-reined-in-or-abolished.html

http://blogs.wsj.com/economics/2010/12/07/house-republicans-continue-drumbeat-against-feds-role/?mod=djemRTE_h

http://www.opposingviews.com/questions/should-the-us-return-to-the-gold-standard

We are a country of laws and tolerance.

You can believe in stones if you like...just don't throw them at me. I remember reading stories about Muslim families in Queens after Sept. 11th getting knocks on their doors shortly thereafter. The neighbors came by not to castigate or villify, but rather to indicate that if anyone gave them a problem they should tell them and they would come to their defense. This is what America truly represents.



http://www.boston.com/bostonglobe/editorial_opinion/oped/articles/2010/12/08/the_islamophobia_myth/

Ken Rogoff talks...time to listen.

http://www.project-syndicate.org/commentary/rogoff75/English

One bad little dude.

If you have eyes and ears all you good men out there, then watch this before you go XMAS shopping and learn.

SHUT UP!

http://online.wsj.com/article/SB10001424052748704156304576003331282575692.html?mod=djemEditorialPage_t

The new Fed mantra.

The mantra at the Fed has always been "there will be no more 1930s and there will be no more 1970s." I think after reading what is below the new mantra will be "there will be no more 1930s, there will be no more 1970s and there will be no Japan."





http://online.wsj.com/article/SB10001424052748704518104575546084161525708.html?mod=WSJ_hps_MIDDLETopStories

The economics of the good and bad of extending unemployment insurance is not clear cut.

http://gregmankiw.blogspot.com/2010/12/my-agnosticism-about-ui.html

The State and City municipalities are next....

http://www.nytimes.com/2010/12/05/us/politics/05states.html?pagewanted=1&_r=1&nl=todaysheadlines&emc=a2

Neat interactive graph of who borrowed what from the Fed during the crisis.

http://online.wsj.com/article/SB10001424052748704594804575648740948074042.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop#project%3DBIG_BANK_CHART_1012%26articleTabs%3Dinteractive

I'm fix'in to get me one of these soon.

No Bozos allowed.

A mechanic was removing a cylinder-head from the motor of a Harley
motorcycle when he spotted a well-known cardiologist in his shop.
The cardiologist was there waiting for the service manager to come
and take a look at his bike when the mechanic shouted across the
garage.

"Hey, Doc, want to take a look at this?"

The cardiologist, a bit surprised, walked over to where the
mechanic was working on the motorcycle.
The mechanic straightened up, wiped his hands on a rag and ask, "So
Doc, look at this engine. I open its' heart, take the valves out,
repair any damage, and then put them back in, and when I finish, it
works just like new. So how come I make $39,675 a year and you get the
really big bucks ($1,695,759) when you and I are doing basically the
same work?"
The cardiologist paused, smiled and leaned over, then whispered to
the mechanic..........."Try doing it with the engine running."

Scream-holler-and kick your heels.

http://andolfatto.blogspot.com/2010/12/oh-outrage.html

Thanks to the venerable Dr. Rothman for pointing this out.

The unemployment bill does NOT extend benefits beyond 99 weeks. It maintains the current structure for another 13 months.



http://www.calculatedriskblog.com/2010/12/tax-negotiations-no-help-for-99ers.html

This is very, very informative...and just plain cool!

The President deserves credit.

The President deserves credit for signing on to extending the lower tax rates for all. The only mistake is Washington needs to follow the Bowles-Simpson plan more closely re: widening the base and lowering the rates, and then making them permanent. That conversation should not die. But the President has helped himself greatly. Not only is he running toward the center which is where this country has to be governed (well, maybe lean a little right of center), this is one of the best things he could have done to help grow the economy and start lowering the unemployment rate. This is his best re-election move to date. I find it very unlikely he will be re-elected with an unemployment rate above 9%. And remember, Iowa, Hawkeye-Cauceye, where we start counting votes for the nomination is upon us in 13 months.

What's the frequency Kenneth? Dan Rather is a tired old fart who needs to shut up.

I hope his 100% confidence is well placed.

John Cochrane gets it right. Where does the moral hazard ever end if everyone is always bailed out 100%?

http://online.wsj.com/article/SB10001424052748704594804575648692103838612.html?mod=WSJ_Opinion_LEADTop

Love is...dressing up for your engagement picture.

And that's what I like about the South!

From Dr. Rothman, the WSJ and the NY Times...the numbers are frightening.

At one point, cumulatively, between March 2008 and March 2009 the Fed had extended over $9 Trillion in credit. Roll that over in your head one more time and see if you can wrap your mind around that....and then tell me that the Fed has made tremendous errors and needs to be vilified for its actions. Look at the list of the folks it extended credit to: Caterpillar, McDonalds, Harley Davidson and on and on. These weren't bailouts and the Fed has not lost a dollar on these actions as of today. Let's do the counterfactual: Take away $9 Trillion in credit like many of the flaming whack jobs want to do and what would have been the path of output and employment? I'll make book for any of you jackwagons out there who say we would now be better off. And I'll take every dime of that action.



http://online.wsj.com/article/SB10001424052748704594804575648740948074042.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop



http://www.nytimes.com/2010/12/02/business/economy/02fed.html?_r=1&ref=economy

Putting the Genie back in the bottle.

Tell China to go to hell. Trade with Columbia.

It is almost more than I can possibly stand any longer. China acts like they don't have a dog in the fight with North Korea. This is no longer acceptable. Either lean hard on that crazy S.O.B. in N. Korea or contemplate life and your economic future with no access to American markets. Dr. Rothman told me recently that one Chinese leader has said when he lays awake nights and stares at the ceiling, he worries how he will create 25 million new jobs every year. Well, if you want to keep filling "the iron rice bowl" it's time to start acting like an international leader. The Wikileaks have also exposed just what your role is in proliferating nasty weapons and missile technology from N. Korea, through China and into Iran.

This is getting nasty and fast.

Trade with our allies like Columbia. Do it now.




http://online.wsj.com/article/SB10001424052748704693104575638402644710436.html?mod=WSJ_Opinion_LEADTop

Poverty is not caused simply by the absence of income.

http://www.newsobserver.com/2010/11/26/824445/the-fragile-family-effect.html

Mo money, mo money, mo money!

My kind of Study.

Really great Power Point presentation from the Fed of St. Louis President on QEII.

We are all about information here at this Blog (plus a little poking fun at life). Thanks to Dr. Rothman for sending this great PP show.



www.funnyeconomist.com/QEII.pdf

Wanna make $$$ investing? Read this opinion piece. All the rest is piffle.

http://online.wsj.com/article/SB10001424052748703848204575608623469465624.html?mod=WSJ_Opinion_LEADTop

Charles Calomiris has some real doubts about QEII.

Martin Feldstein on QEII.

I have been thinking lately that QEII will just do what has already been done...generate another asset price/commodity bubble. If that is the case, then once again the Fed has become the problem and not the solution. I suppose a policy maker always wants to be seen to be doing something in times of crisis. But doing something is not always better than doing nothing, especially if it induces greater instability. And as Charles Calomiris pointed out last week, we are in recovery and not in crisis mode. Is $1 trillion really worth 20 basis points in the 10-year Treasury rate and a huge risk for a redux of That 70s Show?

http://www.ft.com/cms/s/0/9ba381d0-e6b5-11df-99b3-00144feab49a.html#axzz15Z1nm4Ru

More on QEII.

This is what it takes to make any money in horse racing or gambling in general. And even then it's a 5% edge.

http://www.leggmason.com/thoughtleaderforum/2007/conference/crist.html

Today's lesson: Moral Hazard Irish style.

They say God created whiskey so the Irish don't rule the world. Well I dunno. But I do know when the Irish government guaranteed ALL the debts of ALL their large banks in our recent little world crisis, they sure set themselves up for a big headache. It should have been Irish crew cuts for all but the depositors. But the Irish are bailing everyone. Maybe there really is a pot o' gold at the end of the rainbow. For Ireland's sake I hope there is.


http://online.wsj.com/article/SB10001424052748704312504575618080737503218.html?mod=WSJ_Opinion_AboveLEFTTop

Trade, taxes, and economic dynamism.

Is China beginning to unravel? Is the Iron Rice Bowl coming apart? From our friends at www.STRATFOR.com

Greg Mankiw, James Hamilton and Robert Hall are the three most reasonable and scientific non-screaming macro economists around. They talk, I listen.

http://gregmankiw.blogspot.com/2010/11/qe2.html

One more on QEII. Tip o' the hat to my brother and The Armchair Economist for sending it.

Janet Yellen weighs in on QEII.

http://online.wsj.com/article/SB10001424052748703670004575617000774399856.html?mod=WSJ_article_LatestHeadlines

And Blinder does not even have to shout.

http://online.wsj.com/article/SB10001424052748704658204575611052418939656.html?mod=djemEditorialPage_t

Q and A on QEII. It is not cut and dried what will happen.

http://blogs.wsj.com/economics/2010/11/03/qa-on-qe2-what-a-fed-move-would-mean/

Too good not to share. Barry White meet Ben Bernanke.

Women drivers at their best.

History repeats.

http://online.wsj.com/article/SB10001424052702304173704575578410626436120.html

Henninger is right.

More enlightenment.

http://www.econbrowser.com/archives/2010/11/qe2_been_there.html

Happy Veterans' Day!

The 11th hour of the 11th day of the 11th month...ended the First World War in 1918. That is what gave us Veterans' Day. So did the dude above Arch Duke Ferdinand. WWI is ghoulish and ghastly to reflect upon. A machine gun war with Civil war tactics. Mass wave assaults with no chance of success, poison gas, artillery shelling for days on end and trench warfare. I have read reports that some British soldiers were still assaulting German positions at 10:59 am on the last day. God help us. What a waste.

My loyal, faithful and trusty dog Misiu has passed away.

The greatest dog in the world has left me. My dog Misiu (Me-shoe), which is Polish for little teddy bear, has died from an insulnoma which is a tumor on her pancreas. This caused her insulin levels to soar and generated hypoglycemia. We controlled it for a while but the bigger the tumor got, the crazier went the insulin levels until we could no longer keep her blood sugar high enough to survive. I include two pictures of her. One with my other trusty companion, her half brother, Spanky who I lost a few years ago. They are hanging out in my 1971 Bronco that I restored. The other is her and I in a pheasant field in Indiana after a successful hunt. She was deadly for ducks and birds and the most loving creature ever in the house. Don't suppose I'll ever have another dog as great as she. It is a cruel thing that a hunter and his dog do not live the same lifetimes. Losing a hunting companion who would do anything you asked and do everything it could just for your approval and pleasure is worse than dying the death of a thousand stings. I include the video from Jimmy Stewart. The House of Parker is in deep mourning.

The trail of damage. See more at www.calculatedriskblog.com

Great housing idea number II.

http://www.nber.org/feldstein/wsj03072008.html

Great housing idea number I.

http://online.wsj.com/article/SB10001424052970204908604574330883957532854.html

Very, very well-written explanation.

http://online.wsj.com/article/SB10001424052748703506904575592471354774194.html?mod=WSJ_article_LatestHeadlines

This is funny. Thanks Drs. Rothman and Mankiw.

The world's smartest woman.

http://online.wsj.com/article/SB10001424052748704141104575588211544818170.html?mod=djemEditorialPage_t

Tom Cooley et. al. need to be listened to. Thanks to Dr. Rothman for passing this along.

http://www.voxeu.org/index.php?q=node/5692

Makes me feel bad for our itsy bitsy econ bloggers...

Click on it to enlarge

It's Halloween. Careful what you wish for there ole boy!

A cabbie picks up a Nun. She gets into the cab, and notices that the VERY handsome cab driver won't stop staring at her. She asks him why he is staring.He replies: 'I have a question to ask you but I don't want to offend you.'She answers, 'My son, you cannot offend me. When you're as old as I am and have been a nun as long as I have, you get a chance to see and hear just about everything. I'm sure that there's nothing you could say or ask that I would find offensive.''Well, I've always had a fantasy to have a nun kiss me.' She responds, 'Well, let's see what we can do about that: #1, you have to be single and #2, you must be Catholic.'The cab driver is very excited and says, 'Yes, I'm single and Catholic!''OK' the nun says. 'Pull into the next alley.'The nun fulfills his fantasy, with a kiss that would make a hooker blush. But when they get back on the road, the cab driver starts crying.'My dear child,' says the nun, 'why are you crying?''Forgive me but I've sinned. I lied and I must confess, I'm married and I'm Jewish.'The nun says, 'That's OK. My name is Kevin and I'm going to a Halloween party.'

This is fabulous and a "must watch" video.

http://www.lombardimovie.com/?cm_mmc=CheetahMail-_-FR-_-10.22.10-_-NMBOMovie

Cash down a rat hole.

http://johnbtaylorsblog.blogspot.com/2010/10/cash-for-clunkers-in-macro-context.html