200803.31
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The Nordic Model

I am generally of the mind that banks and other financial insitutions that make bad investments should just be allowed to fail. Failures purge the system of bad companies and allow the system to heal faster. The very last resort should be nationalization as the UK did with Northern Rock. That’s why this report disturbs…

200803.31
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SWFs to the Rescue? Maybe Not….

The WSJ economics blog has an interesting entry on the SWF assets. They may not be as much as they seem: If sovereign wealth funds really have $3 trillion in assets why haven’t they bought even more of the U.S. and Europe? Christopher Balding, an analyst at the Milken Instititue, a Santa Monica, Calif., think…

200803.31
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The Root of the Problem

Sean Corrigan has a long, but very accurate article at Mises.org about the banking system and why it is at the root of our current problems. Here’s an excerpt but by all means read the whole thing: With a certain weary inevitability, the cries of pain emanating from those seeing their aspirations ground to dust…

200803.31
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It’s Not Our Fault

I was surprised to find this editorial in Forbes, usually a bastion of free markets and free trade. Peter Morici, a professor at the University of Maryland School of Business (good lord I hope he’s not an economics professor) and former Chief Economist at the US International Trade Commission during the Clinton Administration, fills his…

200803.31
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Schadenfreude

Generally, I don’t think we should enjoy the misfortunes of others – it seems like bad Karma to me – but if ever a group deserved a comeuppance, it is hedge fund managers. They are overpaid and arrogant and no doubt I would be too if I could convince rich people to pay me 2…

200803.30
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This Internet Thingy Will Never Last

From the Paleo-Future blog (via Adam Smith): Every voice can be heard cheaply and instantly [on the Internet]. The result? Every voice is heard. The cacophany more closely resembles citizens band radio, complete with handles, harrasment, and anonymous threats. When most everyone shouts, few listen. . . . Nicholas Negroponte, director of the MIT Media…

200803.29
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Why Commodity Prices are High

The commodity price boom has been attributed to Asian (specifically Chinese) demand, but I include commodities in our portfolios for a different reason. Commodities are the canary in the coal mine of inflation and our mandate for our portfolios is to protect purchasing power. This article at Voxeu.org by Jeffrey Frankel (jeffreyfrankel@voxeu.org) explains why commodities…

200803.29
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Peak Oil My A**

The Malthusians who claim that we are running out of oil just don’t get it. There is plenty of oil in the world and technology will find ways of extracting it: America is sitting on top of a super massive 200 billion barrel Oil Field that could potentially make America Energy Independent and until now…

200803.28
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Hypocrisy

From Steve Pearlstein at the WaPo: Well, isn’t this rich: Max Baucus of Montana and Chuck Grassley of Iowa, chairman and ranking member, respectively, of the Senate Finance Committee are suddenly in a lather that taxpayer funds might be implicated in the Federal Reserve’s rescue of Bear Stearns. Would that be the same Max Baucus…

200803.27
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Freedom From Markets

One of my pet peeves is the pork ladled out to US farmers. I have nothing against farmers; I grew up in the south where farming is a way of life, but the largess shown to farmers in this country is obscene. Farm subsidies distort markets and support businesses that should by all rights fail….