200806.27
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This Stock Market is Similar to 1933

I’ve seen some commentary recently about how bad the market is, comparing it to the previous worst start to a year, 1933. That sounds ominous since everyone knows that 1933 was in the middle of the Great Depression. Unfortunately for the gloom and doom crowd, 1933 also proved to be the bottom of a bear…

200806.27
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Best Evidence Yet of an Oil Bubble

Paul Krugman’s editorial on oil speculators is actually technically correct, but when he says that the price of oil is supported by fundamentals, well that is to me prima facie evidence of a bubble. Krugman’s track record since he started writing for the NYT is terrible and betting against him would have been very profitable….

200806.26
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Bernanke Blew It

I wonder if Ben Bernanke will ask for do overs on the FOMC meeting yesterday. Whatever reaction he expected from the inaction and statement of continuing belief in the future moderation of inflation (a belief that at this point is akin to the belief in unicorns) I’m guessing it wasn’t a near 400 point sell…

200806.25
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FOMC Policy Statement

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent. Recent information indicates that overall economic activity continues to expand, partly reflecting some firming in household spending. However, labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing…

200806.25
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Durable Goods Orders

Orders for durable goods were unchanged in May, as orders for airplanes and defense goods offset weaker demand for machinery and metals. Economists were expecting a decline of 1.0% for the month. It is the second straight monthly decline, but, considering orders remain unchanged since January, some economists were quickly questioning if the U.S. economy…

200806.24
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Guess Who Said This

“Well, housing prices are falling and many banks have bad loans and if prices fall much further the borrowers won’t have the money to pay the loans back.” Click on the title of the post to find the answer.

200806.19
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Cure for High Oil Prices

The cure for high oil prices is……high oil prices. This story from the IHT is about the boom in buidling offshore drilling rigs. Day rates have risen dramatically due to current shortages so ship builders are scrambling to build new drilling ships: As President George W. Bush considers repealing a ban on drilling off most…

200806.19
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Doddering Dodd

Senator Chris Dodd is the chairman of the Senate Banking Committee. He’s also a “friend of Mozilo” who got a special rate on his home loan. I can’t figure out for the life of me why the CEO of a mortgage company would want to provide a cut rate mortgage to the chairman of the…

200806.19
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Collective Madness

Victor Davis Hanson at the Corner: There is something pathetic about Americans begging the House of Saud to produce another 300,000-500,000 barrels of oil per day, while in mindless fashion repeating the mantra, “We can’t drill our way out of this problem” — as if anyone suggested absolute oil independence was the goal rather than…

200806.18
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True Progessivism

That’s the title of a post at Cafe Hayek. Don Boudreaux: According to today’s Wall Street Journal, Barack Obama alleges that “Globalization and technology and automation all weaken the position of workers.” If this presidential wannabe is correct, then some of the world’s most prosperous workers must be the people in that newly discovered tribe…