Exiting The Euro
Guest post from friend of Alhambra, Brian Cronin: “The union of these States is perpetual. No state, upon its own mere motion, can get out of the union. The central idea of secession is the essence of anarchy.” So said Abraham Lincoln in March of 1861. On the other hand: “to exercise self determination through .. read more
European Elections – The End of Austerity
Guest post from friend of Alhambra, Brian Cronin: The problem with entitlements is that once they are in place, they are extremely difficult to amend or even take away. Many seniors in the US for example, once intitially fearful of the Medicare Part D drug plan, have come to accept it and enjoy its economies .. read more
What Could Have Been
The first order of business for the Obama administration after getting elected was to enact a stimulus plan. At the time, Christina Romer was in charge of devising the stimulus plan and I had high hopes for her. Her research had shown that tax changes had a much bigger impact on the economy than spending .. read more
Margaret Thatcher: The Iron Lady
Guest post from friend of Alhambra, Brian Cronin: I emigrated to the US in 1983 and became an American citizen in 1987. It was the second best thing I ever did though it confounded some of my British friends. There cannot be too many American citizens who can say they voted for Margaret Thatcher but .. read more
Secular Trends – Rent Seeking
There is definitely a higher cost of living in certain areas of the United States. This can be because an area is geographically desirable, the beauty and climate of the California coast or the cosmopolitan setting of Manhattan; it can be because an area is economically desirable, Silicon Valley or Cambridge, MA. Everyone has their .. read more
Tactical Update
This week, one particular article sparked an intense internal dialogue about some of the global economic realities that have us concerned. The article is from Peking University’s Professor Michael Pettis. Prof. Pettis opines that Chinese citizens would rather save than spend and that Japan, who has recently run a current account deficit, would prefer to .. read more
Weekly Economic & Market Review
It is not often that I have agreed with Ben Bernanke over the years but in his testimony to Congress last week, the Fed Chairman said something I agree with almost completely (HT to Alan Abelson at Barron’s): “The long-term health of the economy depends mostly on decisions taken by Congress and the administration.” In .. read more
The Commanding Heights
We gather tonight knowing that this generation of heroes has made the United States safer and more respected around the world. (Applause.) For the first time in nine years, there are no Americans fighting in Iraq. (Applause.) For the first time in two decades, Osama bin Laden is not a threat to this country. (Applause.) .. read more
