For anyone whose read my pieces in the past, knows that I hold a certain disdain towards former Reagan White House OMB Associate Director/conservative-libertarian Ayn Rand acolyte Larry Kudlow. It's nothing personal against the guy, it's his ideas and economic policy objectives that I find fault with. For the past couple of months, he's been going on about this is the "Goldilocks economy." Essentially, that we're worrying about nothing because one bad economic indicator is being offset by a good one (mind you, he's often just used productivity as that one). Well today, despite his claims that all is almost well, we got some news that just proves Larry Kudlow wrong!
Ok, I will give him some credit. He isn't a Pollyanna and he has come out and said this or that has been bad or needs to get better. Still, his overall anthem is that things are really great and that we (he's quoted Phil Graham) should stop "whining."
From CBS MarketWatch, Paul B. Farrell says America loves war! Contained within he makes the points:
Why else are Americans so eager and willing to surrender 54% of their tax dollars to a war machine, which consumes 47% of the world's total military budgets?
Why are there more civilian mercenaries working for no-bid private war contractors than the total number of enlisted military in Iraq (180,000 to 160,000), at an added cost to taxpayers in excess of $200 billion and climbing daily?
Why have Washington's 537 elected leaders turned the governance of the American economy over to 42,000 greedy self-interest lobbyists?
Is anyone else noticing that on major financial sites more and more we are reading facts that are implying they too want to see some real policy change?
Greetings ladies and gentlemen to the latest episode of Manufacturing Monday. Couple of interesting things to discus today, and some interesting numbers to watch this week. First we have what appears to be a new take on price fixing by manufacturers. Next we explore the recent collapse in the price of grains. Our last piece is a story from the Financial Times where companies and groups are hiring the very element that help drive up their costs, speculators, to well...sorta fight speculators. Kinda reminds me of those old westerns where they hire a gunfighter to take on the baddie. Finally, as mentioned, there are numbers we're watching, the Producer Price Index being released tomorrow, Jobless claims and the Philadelphia Fed Survey on Thursday.
Woe be the retailer who wants to mark down a product!
If you're wondering why the stock market is taking a nose dive today, Barrons reported the government is planning on Freddie Mac and Fannie Mae to not be able to raise enough capital.
The one thing I've consistently seen on the progressive web sites whenever someone points out an economic problem is an attitude of, "Just wait until Obama gets in. Then he'll fix this."
This is delusional thinking! It's as bad as the mindless, head nodding of the Republicans when Bush told them that people hated America "because of our freedom."
For instance, there is talk of a "New New Deal". Obama is promising universal health care.
Where exactly is this money going to come from?
First of all, we need to get a grip on what we are facing.
Should the Pharmaceutical industry be for profit? The orthodoxy is profit motives new drug discoveries, research and without it most drugs would never be discovered. But is the dogma from the profit church true?
Despite prescription drugs having a market growth rate of ~4.5% per year and total US sales of $286 billion, global $745 Billion, in 2007, the press was all aghast at the market decline and blamed it all on the lack of new products.
I wonder if you look at medicine as a product? Well, in the current state of affairs life saving compounds are.
The New York Times has a biography on Nouriel Roubini.
Roubini is one of the Cassandras of the financial and housing crisis from 2006, when no one would listen.
According to the article, after Roubini gave a talk on the housing bubble the response was:
The audience seemed skeptical, even dismissive. As Roubini stepped down from the lectern after his talk, the moderator of the event quipped, “I think perhaps we will need a stiff drink after that.” People laughed
What explains Dr. Doom's perceptions is his international economics background and the particular study of domestic economies financial collapses:
Good Morning! Rise and Shine! Get that Cup O' Joe...
break out the O.J....hang out with the pooch...time to check out the Funnies!
This weeks theme.....your house is worth gobs nothing and what does it matter because you can't make the payments anyway...otherwise known as....the Housing Bubble.
It appears (finally) Congress might step in on those exorbitant overdraft and over the limit fees that the banks like to call Protection.
Did you know banks automatically enroll you in their Protection schemes which instead of plain bouncing the check, provide you with a loan which comes with hefty, hefty fees? Anyone else reminded of a movie scene when mobsters shake down the neighborhood for protection money?
It appears two Democrats in the house have introduced a bill, Consumer Overdraft Protection Fair Practices Act
Consumers would have to "opt-in" to overdraft protection programs and banks would be required to inform consumers when they are about to overdraw their accounts."
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