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How to get a good deal on a new car
There is an historic backlog in cars. Every day brings the dealers deeper in debt, the auto companies’ unsold inventories pile up, and the introduction of the 2010 models looms ever closer. The amount of unsold 2009 models will be astounding. So, if you’re going car shopping, just bring along a copy of this photo: […]
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Are our demographics engineered for moral hazard?
For all of the hand wringing about the $700B bailout, the Feds have put our nation’s children on the hook for about $8T (and counting) without a single vote from Congress (who, by the way, is doing everything they can to do as little as they can so that they can avoid political liability that […]
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Are long bear market rallies history?
I have no clue what’s going to happen on the market, but I’d just like to point out something that I haven’t seen anybody really talk about yet. For all the talk about comparing this present market to the bear market of the early 30s, there is one huge, obvious difference: information moves a lot […]
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Schwarzenegger to nation: Let’s drag out the recession as long as possible, ok?
The central cause of the current recession (or maybe depression) was the overextension of credit, especially in the housing sector. So, how do you get out of that kind of jam? Foreclosures and time. Those that can’t afford their homes will have to lose them, and the banks will get back as much as they can, […]
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The famous L. Tureaud recommends going short equities
 I envision Bernanke in a headlock in one arm, screaming “Ok, ok, we over inflated!” with Paulson in the other, choking “Let go, can’t breathe! Ack. Fine! We lied about TARP! Ok?”
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Gold will not necessarily go up during deflation
Many financial commentators, including the usually on-the-spot Mish Shedlock, have been saying for quite some time that gold will go up in a deflationary environment. Their argument is that gold is money and money does well in deflation. I would be willing to wager that Mish has more understanding of economics while half asleep than I […]
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The bailout, part II
Did I say bailout? I meant rescue. Here is an excerpt from one of the smartest financial writers I know of, Mish Shedlock: To stimulate lending, the bailout plan will attempt to recapitalize banks. The method of recapitalization is best described as robbing Taxpayer Pete to pay Wall Street Paul. In essence, money is taken […]
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Taxing the poor to bail out Wall Street
It has been assumed that the cost of the putative bailout will be born by taxpayers. However, since that the Fed and Treasury will pay for it with debt and by printing money, the people who will pay for it are anyone who holds dollars. Given that the final cost could end up in the […]
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Gatorade: a prime example of cynical marketing
It should be obvious, but sometimes it bears reminding that people in corporate marketing often don’t operate with a tremdous amount of integrity. For lack of anything better to write, I thought I’d pass along a banal but telling observation I recently made about, of all things, Gatorade. Gatorade was created by legitimate sports scientists, and […]
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Saudi Oil and the US dollar
Last week the dollar began to recover in value as the Bush administration finally started making serious noise about a strong dollar policy. Now, right on the heels of that display, the Saudis finally agree to up production. Both events were a bit long in coming, at least relative to the reasons stated by each party. […]