Category Archives: Finance

Assorted Links (6/14/2010)

Here’s a list of articles that I have been reading lately:

Stephen A. Blumenthal: It’s Time to Nationalize Fannie and Freddie – WSJ.com

online.wsj.com

“In The Wall Street Journal, Stephen A. Blumenthal writes that any solution that allows private companies to have a special relationship to government is destined to fail.”

Think Smarter About Risk – WSJ.com

online.wsj.com

“Moshe A. Milevsky says in The Wall Street Journal that when gauging risk, too many investors don’t consider the most important asset: their human capital.”

Opening weekend – 2010 World Cup – The Big Picture – Boston.com

boston.com

“The 2010 FIFA World Cup opened last Friday in South Africa, after years of preparation, with an Opening Ceremony at Soccer City Stadium – the first matches taking place over the weekend.”

Foreign Tax Bill Likely, But ‘A Bad Idea,’ Validus CEO Says

highlinedata.com

“NEW YORK-Proposed legislation denying tax deductions for reinsurance premiums paid to offshore affiliates will likely pass through Congress, a Bermuda executive predicted here yesterday, but he criticized the measure as a restriction of free trade.”

The Dark Side of Stimulus

“‘Regulating Wall Street’ Co-Editor and NYU economics professor Thomas Cooley breaks down the pros and cons of stimulus spending…”

Gerald O’Driscoll: The Gulf Spill, the Financial Crisis and the Failure of Big Government – WSJ.com

online.wsj.com

“In The Wall Street Journal, Gerald P. O’Driscoll notes that Republicans and Democrats fail to see the limits of centralized regulation in a modern market economy.”

Dynamic Dr. Krugman|KeithHennessey.com

KeithHennessey.com

“In his column today Dr. Paul Krugman argues that the deficit impact of a large ($1 trillion) stimulus would be mitigated by the effects of higher GDP growth.”

Women Prefer Men Holding State Bonds, Japan Ad Says (Update1) – Bloomberg.co.jp

Bloomberg.co.jp

“June 9 (Bloomberg) — Japanese women are seeking men who invest in government bonds, according to an advertisement being run by the Ministry of Finance.”

The Road to Price Controls — The American, A Magazine of Ideas

www.american.com

“Conventional wisdom is that U.S. pharmaceutical companies made out well under the Obama health plan by bargaining with the White House. That wisdom is wrong.”

Just How Risky Are Nuclear Industry, NASA Missions? – The Numbers Guy – WSJ

online.wsj.com

“Scientists in some risky pursuits attempt to quantify risks, which helps identify trouble spots. That might be in the future of the deep-sea oil-drilling business.”

Scenes from the Gulf of Mexico – The Big Picture – Boston.com

boston.com

“Based on recently revised estimates, BP’s ruptured oil well at the bottom of the Gulf of Mexico continues to leak 25,000 to 30,000 barrels of oil a day. The new figures suggest that an amount of oil equivalent to the Exxon Valdez disaster could still be flowing into the Gulf of Mexico every 8 to 10 days.”

Lawrence M. Krauss: Science and the Gulf Spill – WSJ.com

online.wsj.com

“In The Wall Street Journal, scientist Lawrence M. Krauss says that TV has fueled unrealistic expectations of a quick fix to the oil spill.”

Fouad Ajami: Iran and the ‘Freedom Recession’ – WSJ.com

online.wsj.com

“Fouad Ajami writes in The Wall Street Journal about the anniversary of the Iranian crackdown on pro-democracy protests that Facebook had no answer to the pro-regime vigilantes who ruled the streets. And the U.S. president, who might have helped, stood aside.”

Andy Kessler: The iPhone, Net Neutrality and the FCC – WSJ.com

online.wsj.com

“Andy Kessler writes in The Wall Street Journal that the FCC should make it easier for more companies to enter wireless data and cable broadband markets.”

Peggy Noonan: ‘We Are Totally Unprepared’ – WSJ.com

online.wsj.com

“Peggy Noonan writes in The Wall Street Journal that nine years after 9/11, there is a chilling complacency about WMD attacks.”

Charles Krauthammer – The myth of Iran’s ‘isolation’

washingtonpost.com

“Obama’s strategy against Tehran hasn’t worked.”

Don’t Believe the Double-Dippers

online.wsj.com

“Alan Reynolds writes in The Wall Street Journal that while liberals issue dire warnings to argue for more stimulus spending, Republicans embrace gloom as evidence stimulus hasn’t worked. Truth is the economy isn’t that bad.”

Obama Meets Toto

online.wsj.com

“In The Wall Street Journal, Dan Henninger writes that with the Gulf oil spill, faith in the omnipotence of government has put us in the land of Oz.”

Europe’s Determination to Decline

www.project-syndicate.org

“At a time when their economies are sputtering, European leaders have embraced the bizarre idea of further reductions in greenhouse-gas emissions. There is a strong correlation between carbon emissions and GDP growth, so, in the absence of alternatives to fossil fuels, Europeans are, in effect, calling for an even deeper recession.”

Classic Adam Smith quote on banking…

“Though the principles of the banking trade may appear somewhat abstruse, the practice is capable of being reduced to strict rules. To depart upon any occasion from those rules, in consequence of some flattering speculation of extraordinary gain, is almost always extremely dangerous, and frequently fatal to the banking company which attempts it.”

— Adam Smith, “The Wealth of Nations”, 1776

Assorted Links (5/29/2010)

Here’s a list of articles that I have been reading lately: 
 
Charles Krauthammer – A disaster with many fathers
“Obama is as responsible for the Gulf as Bush was for New Orleans.”
 
Academics on What Caused the Financial Crisis – Real Time Economics – WSJ
“The Financial Crisis Inquiry Commission on Friday and Saturday heard several academic economists’ take on what led to a near-meltdown of the global economy.”
 
Static In Search for Cellphone-Tumor Link – The Numbers Guy – WSJ
“Why a long-term study couldn’t reach conclusive results.”
 
Mark Helprin: On Memorial Day – WSJ.com

“In The Wall Street Journal, Mark Helprin writes about what we owe to the fallen, and to those now serving.”

 
Calling a State Sponsor a State Sponsor

“A growing body of evidence points to Venezuelan dictator Hugo Chavez’s singular role in supporting terrorism and related criminality.”

 
“Waves & Beyond and The Gift by Jan Florence Garven: Jan Florence Garven is an artist who specializes in mixed media. She combines paper, metal, wax, textiles and found objects to convey conceptual images.”
 
Lighter than air – The Big Picture – Boston.com
“Fill a lightweight material with hot air, helium or hydrogen, and you have a vessel that floats in the air. People around the world use balloons, blimps and airships for transportation, to conduct research, to deliver messages, to protest, and – mostly – for having fun.”
 
Peggy Noonan: He Was Supposed to Be Competent – WSJ.com
“The spill is a disaster for the president and his political philosophy, Peggy Noonan argues in The Wall Street Journal.”
 
Obama’s Blowout Preventer – WSJ.com
“The Wall Street Journal that Interior Secretary Ken Salazar had a reform plan to prevent blowouts like the one at the Deepwater Horizon oil rig in the Gulf of Mexico.”
 
“Governments were the solution to the economic crisis. Now they are the problem.”
 
“After a yearlong effort to get it right, the U.S. Senate passed a financial overhaul bill last week that actually weakens the government’s ability to manage the next financial crisis. The House version passed last December is better, but not much.”

Assorted Links (5/29/2010)

Here’s a list of articles that I have been reading lately: 
 
Charles Krauthammer – A disaster with many fathers
“Obama is as responsible for the Gulf as Bush was for New Orleans.”
 
Academics on What Caused the Financial Crisis – Real Time Economics – WSJ
“The Financial Crisis Inquiry Commission on Friday and Saturday heard several academic economists’ take on what led to a near-meltdown of the global economy.”
 
Static In Search for Cellphone-Tumor Link – The Numbers Guy – WSJ
“Why a long-term study couldn’t reach conclusive results.”
 
Mark Helprin: On Memorial Day – WSJ.com

“In The Wall Street Journal, Mark Helprin writes about what we owe to the fallen, and to those now serving.”

 
Calling a State Sponsor a State Sponsor

“A growing body of evidence points to Venezuelan dictator Hugo Chavez’s singular role in supporting terrorism and related criminality.”

 
“Waves & Beyond and The Gift by Jan Florence Garven: Jan Florence Garven is an artist who specializes in mixed media. She combines paper, metal, wax, textiles and found objects to convey conceptual images.”
 
Lighter than air – The Big Picture – Boston.com
“Fill a lightweight material with hot air, helium or hydrogen, and you have a vessel that floats in the air. People around the world use balloons, blimps and airships for transportation, to conduct research, to deliver messages, to protest, and – mostly – for having fun.”
 
Peggy Noonan: He Was Supposed to Be Competent – WSJ.com
“The spill is a disaster for the president and his political philosophy, Peggy Noonan argues in The Wall Street Journal.”
 
Obama’s Blowout Preventer – WSJ.com
“The Wall Street Journal that Interior Secretary Ken Salazar had a reform plan to prevent blowouts like the one at the Deepwater Horizon oil rig in the Gulf of Mexico.”
 
“Governments were the solution to the economic crisis. Now they are the problem.”
 
“After a yearlong effort to get it right, the U.S. Senate passed a financial overhaul bill last week that actually weakens the government’s ability to manage the next financial crisis. The House version passed last December is better, but not much.”

Assorted Links (5/11/2010)

Here’s a list of articles that I have been reading lately:

Did a Big Bet Help Trigger ‘Black Swan’ Stock Swoon? – WSJ.com

online.wsj.com

“A tsunami of selling pressure that spread to nearly all parts of the market last Thursday may have had its roots in a single bearish bet.”

Euro-zone Bailout Spurs Moral-Hazard Fears – WSJ.com

online.wsj.com

“A €750 billion bailout package for euro-zone governments facing debt troubles has created another urgent challenge for European policy makers: how to keep free-spending governments in line.”

Depression 2010?

www.realclearpolitics.com

“It is now conventional wisdom that the world has avoided a second Great Depression. Governments and the economists who advise them learned the lessons of the 1930s. When the gravity of the financial crisis became apparent in late 2008, the response was swift and aggressive.”

The Welfare State’s Death Spiral

www.realclearpolitics.com

“What we’re seeing in Greece is the death spiral of the welfare state. This isn’t Greece’s problem alone, and that’s why its crisis has rattled global stock markets and threatens economic recovery.”

What Happened to Due Process?

www.campaignforliberty.com

“A bipartisan group of legislators have introduced a bill that would focus on stripping Americans of their citizenship if they are found to be involved in “terrorism”.”

Landscapers find workers choosing jobless pay

detnews.com

“In a state with the nation’s highest jobless rate, landscaping companies are finding some job applicants are rejecting work offers so they can continue collecting unemployment benefits.”

Garven comment: Here is some compelling anecdotal evidence concerning the unintended consequences of unemployment benefits. Believe it or not, insuring people against the financial consequences of unemployment can actually create more unemployment!

Assorted Links (5/10/2010

Here’s a list of articles that I have been reading lately:

David McCourt: FCC Regulation of the Internet May Chill Investment in Broadband – WSJ.com

online.wsj.com

“In The Wall Street Journal, David McCourt says the FCC’s determination to impose net neutrality regulations on ISP companies will make investments in broadband more uncertain.”

Fouad Ajami: Islam’s Nowhere Men – WSJ.com

online.wsj.com

“In The Wall Street Journal, Fouad Ajami notes that millions of young Muslim men like Faisal Shahzad are unsettled by a modern world they can neither master nor reject.”

ObamaCare’s Phony Medicaid ‘Deal’ – WSJ.com

online.wsj.com

“In The Wall Street Journal, constitutional law professor Richard Epstein says that the new health law unconstitutionally coerces the states.”

Is It Too Big to Save? — The American, A Magazine of Ideas

www.american.com

“If you’re only going to read one book on the financial crisis, this should be the one. ”

Shahzad’s Lesson: Foreclosed Is Forearmed – WSJ.com

online.wsj.com

“In The Wall Street Journal, satirist Joe Queenan writes that history is littered with tales of men who turned to violence because of bad real-estate investments.”

Julius Caesar of the Internet – WSJ.com

online.wsj.com

“The Wall Street Journal writes that the Obama Administration’s attempt to regulate the Internet is unlawful and unnecessary.”

Global markets: So, about that crash | The Economist

www.economist.com

“ON THURSDAY afternoon, between 2:30 and 3:00, the Dow Jones Industrial Average suffered one of the largest and most dramatic swings in its long history. In the space of just a few minutes, the Dow went from being down around 300 points to being down nearly 1,000 points.”

Jeffrey Miron » Blog Archive » Regulating the Internet

jeffreymiron.com

“In a move that will stoke a battle over the future of the Internet, the federal government plans to propose regulating broadband lines under decades-old rules designed for traditional phone networks.”

Kim Strassel: Financial Reform Goldman Can Love – WSJ.com

online.wsj.com

“In The Wall Street Journal, Potomac Watch columnist Kimberley Strassel notes that the Democrats’ anti-Wall Street rhetoric conceals a major fund-raising campaign. The actual financial reforms will not seriously damage the major players.”

What the Hell Just Happened in the Market? – Business – The Atlantic

www.theatlantic.com

“For those who don’t have Bloomberg News on 24/7, the Dow just dropped almost 1,000 points…”

Michael Boskin: Time to Junk the Corporate Tax – WSJ.com

online.wsj.com

“In The Wall Street Journal, MIchael Boskin writes that the U.S.has the second-highest corporate income tax rate of any advanced economy, and that reforming it would boost the economy and future business investment.”

Dan Henninger: Blame Obama. Why Not? – WSJ.com

online.wsj.com

“In The Wall Street Journal, Dan Henninger writes that as the oil-spill cleanup shows, some things are beyond even Barack Obama’s belief in the powers of government.”

Another Fine Mess – WSJ.com

online.wsj.com

“John Fund writes in The Wall Street Journal that the Obama administration was caught unprepared for the oil spill.”

Why Our Current Budget Situation Is a Crisis — The American, A Magazine of Ideas

www.american.com

“There is no precedent for reducing the ratio of debt to GDP by simply growing our way out of it.”

Robert G. Wilmers: What About Reforming Fannie Mae and Freddie Mac? – WSJ.com

online.wsj.com

“In The Wall Street Journal, Robert G. Wilmers, the chairman and CEO of M&T Bank Corporation, says that Fannie and Freddie need to be reformed, lest we have another financial crisis down the road.”

Drilling in Deep Water – WSJ.com

online.wsj.com

“The Wall Street Journal writes that a ban on offshore production won’t mean fewer oil spills.”

Fred Barnes: Democrats at Ramming Speed – WSJ.com

online.wsj.com

“In The Wall Street Journal, Fred Barnes writes that the White House wants to pass as much legislation as possible before losing its big majorities, no matter how unpopular its proposals are.”

Brian M. Carney: A Tale of Three Cities – WSJ.com

online.wsj.com

“Editorial Page Editor Brian M. Carney writes in The Wall Street Journal that Athens, London and Washington each respond to looming insolvency in telling ways.”

Esther Duflo: Social experiments to fight poverty | Video on TED.com

www.ted.com

“Alleviating poverty is more guesswork than science, and lack of data on aid’s impact raises questions about how to provide it. But Clark Medal-winner Esther Duflo says it’s possible to know which development efforts help and which hurt — by testing solutions with randomized trials.”