Shortly upon receiving his Nobel Prize, Andre Geim made the following entry in his blog titled "Conscience of a Physicist": "A heated body can only lose its heat through conduction or convection". At which point a fifth-grader named Joe Schmuck complained that they are giving away Nobel prizes to illiterate pretenders who don't even know about radiation. [more]
On Aug 31, I called a bottom at about 1050 and predicted S&P would be at 1200 by November. It closed today at 1183. That was a pretty good call. I was just looking at the valuations and the near-certainty of more printing by Bernanke & Co. [more]
David Levy and Srinivas Thiruvadanthai share the Idiot of the Day award for their article "Uncle Sam won't go broke". Trying to refute the popular view that the US is just a Greece with a printing press, they cite the fact that "unlike Greece, the U.S. has control of its currency, a long history of managing its public debt without default, a proven ability to collect taxes, and a deep and liquid market for its publicly traded debt." [more]
I've also read that article by TMFKopp, and I can say that he is right, but for the wrong reason. [more]
Krugman is really giving me the creeps with his blogs like this one. [more]
Sarkosy wins the award for attempting to raise the retirement age even as his country does not have enough jobs for its workers now when everybody retires early.
Airstrip One surprises observers by shooting itself in the foot with its "austerity plan". One would expect them to learn from Ireland's experience. But then again, an idiot is someone who chooses to learn from his own mistakes...
They were sitting together next to the pump, and the air was leaking out. [more]
Leave the steering wheel alone.
American capitalism again proves to be the best model when it comes to housing affordability. [more]
The market continues to misbehave in several segments at once, and I see clearly that keeping the all-star charm during the next several months will be very difficult and in fact, unlikely. First, there is this emerging-markets rally detached from all fundamentals and looking like a replica of 2007. I am short China in Caps, and red ink will only be getting worse until the rally runs out of breath. Then there is oil rally running on hopes for more demand from China and the last stage of the gold bubble that could see prices double, and finally, there is disappointing performance by the banks. Only the blue chips are behaving correctly. [more]
Wall Street executives have shown to us that in their opinion, anyone can be a foreclosure expert. While many bloggers misspend their anger pointing out that untrained robo-signer hair stylists may not make the best foreclosure experts, I have a much better suggestion. [more]
Market lies are a fact of life and there is nothing surprising about it given the number of special interest groups all looking for ways to change ownership of the dollar bill that currently belongs to you. The ways these lies work are numerous enough to provide material for a thousand Ph.D thesises. But in the first crude approximation we can divide them into two categories: lies that are designed to trick you into thinking they are truths, and lies that are designed to affect your decisions even while you know they are lies. [more]
An independent inflation index from Google! When I heard that, my first thought was, "I wouldn't want to be a Google shareholder now!". My second thought was, "It's a great time to be a Google shareholder!" [more]
You may often hear that walking away from a mortgage is "wrong". As for myself, I am amazed that this question is even being discussed seriously. [more]
For that whole year, economists had been trying to explain to the inflation hawks that inflation fears are overdone. [more]
Let us fine corporations for creating jobs. That way, unemployment will never fall below 10% and Bernanke will never run out of reasons to follow through with QE2, QE3, ... QE_N. The expectation of QE will become permanent and the stock market will go permanently up.
I think it will. Or at any rate it should. If Goldman ever sold toxic junk to clueless investors, it's this. [more]
I am surprised so few people realize that America's main export product is not legal services, Barbie dolls or even software. No, its main export product is Keynesian services of market-making, that is, making a market for consumer goods other countries need to dispose of. [more]
Monetizing debt feels great when that debt is owed to someone else. It doesn't feel nearly as great when your debt, to the tune of two GDPs, is owed to your own citizens. By using Bernanke's methods in a country of savers rather than a country of debtors, Japan is launching a two-pronged attack on its own population, eroding their wealth through inflation at home and through exchange-rate losses of purchasing power abroad. Japanese bondholders will be happy to hear the news. [more]
"Oct 4, 2006: The US will speed up the introduction of a trial property tax in some cities and then expand the levy to the whole country to curb rising real estate prices, the government said, without giving a timetable. [more]
This was a comment by player whereaminow in ETFsRule's blog about gold. It looks correct overall, but it got me thinking and prompted me to write this reply: [more]
Starting from tomorrow I will be making some changes in the real life portfolio. [more]
As you may know, I am still very bullish on the indexes. But bullishness has some reservations. [more]