Use access key #2 to skip to page content.

January 2009



New ways to fight the crisis

January 22, 2009 – Comments (1)

Anti-crisis toilet paper:
  ...and a crisis-resistant wallet      [more]



Good buy, Mr. President, we'll miss you

January 16, 2009 – Comments (3)

What's that flushing sound? It's water running down the pipes of George Bush sewage treatment plant. Well, not, quite true, but it was a close call. Some people might say it's a good thing the vote failed because George Bush sewage treatment plant is a misnomer that doesn't do full justice to the exact nature of Bush's talent. They might point out, correctly, that a sewage treatment plant turns sewage into clean water, whereas George W. has a Midas touch, where everything he handles turns into, well, how shall I put it? You know, the row material for the sewage treatment plant. That's a good point, but it's only part of the truth. Because when Geoge W. took office, there wasn't that much clean water for him to turn into sewage anyway. If anything, the raw material that George W. started with was the same sewage, only more concentrated. Can you get warmer inside the freezer? Yes, you can, if it was even colder outside.  [more]




January 14, 2009 – Comments (5)

An interesting summary of the Libertarian cause here.   [more]



Nobody could predict the crisis? Think again.

January 13, 2009 – Comments (4)

"Owners of capital will stimulate the working class to buy more and more of expensive goods, houses and technology, pushing them to take more and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks, which will have to be nationalized, and the State will have to take the road which will eventually lead to communism."  [more]



Libertarianism won't work any better than Bailoutism

January 13, 2009 – Comments (0)

Here is my response to DaretothRedux on the Prove it blog.   [more]



Cheap valuations should not be a reason to panic

January 12, 2009 – Comments (21)

As one rally after another fizzles out, many bloggers begin to sound almost desperate, and to pray for the market to go up. These people should be advised to be careful what they wish for. There is no way to get around this simple fact: in order to profit from stock purchases, one needs to buy at a low price, and this low price can only be found during a bear market. It is surprising that people would show such underappreciation of the basic thesis that makes purchase of stocks attractive to begin with.   [more]



Great decision

January 12, 2009 – Comments (0)

Most of you would think the decision to let Madoff remain free is a travesty. I disagree, here's why. Up till now, it's been commonly understood that stealing is OK as long as you steel from the poor (look at the IIG story). But stealing from the very rich was a different matter.   [more]



End-of-the-year summary

January 01, 2009 – Comments (4)

2008 was a year when the economy seemed to be at the crossroads. As early as by the end of 2005 it was clear that the government had only two choices: 1.) Inflate the housing bubble still farther, reinflate it again, reinflate again, and so on, ad infinitum... or 2) Deflate the housing bubble and move on. Keeping things as they were was not clearly an option: existing mortgage debt could not paid without refinancing followed by another refinancing followed by another refinancing... It seemed clear that the Fed would have to either start a major hyperinflationary spiral or let the banking system go kaboom. So it's natural that people expected a binary outcome: a deflationary market crash (a la Japan in the 90s) or the beginning of an endless credit-driven speculative bubble (a la Japan in the 80s). The main surprise of the year was that the Fed chose to treat us with both. The result was a stomach-churning volatility that could have made Paulson's bosses trillionnaires if this were premiditated. The irony is that it was not, and that most of the policy choices were a result of sheer stupidity. Now that 2008 belongs to the past, it's easy to see how it all happened, even though it was not obvious to us back then.  [more]

Featured Broker Partners