:: Friday, December 05, 2008
Latest Article
Deflation and Helicopter Ben: the U.S. economy on the line
By Cheryl Grey
There’s been a lot of chatter in the financial news this past week concerning deflation, with one blogger for the Motley Fool [http://caps.fool.com/blogs/viewpost.aspx?bpid=111216&t=01001019292467236494] even proclaiming, “Clearly deflation is here.” But is it? Are we there yet? Deflation is defined as falling prices over a lengthy and sustained period of time, often combined with a decrease in the money supply. Therefore, ..
By Cheryl Grey
There’s been a lot of chatter in the financial news this past week concerning deflation, with one blogger for the Motley Fool [http://caps.fool.com/blogs/viewpost.aspx?bpid=111216&t=01001019292467236494] even proclaiming, “Clearly deflation is here.” But is it? Are we there yet? Deflation is defined as falling prices over a lengthy and sustained period of time, often combined with a decrease in the money supply. Therefore, ..
Latest Blogs
Sheila Bair: A Ray of Light in a Dark Economy
By Tamera Daun
2 comments»
Sheila Bair keeps speaking out, and certainly deserves respect as a clear-thinker in these abominable economic times. Bair reiterates the same message week after week, although most likely the cause of a few 'Paulson & Co' migraines. Bair unde....
By Tamera Daun
2 comments»
Sheila Bair keeps speaking out, and certainly deserves respect as a clear-thinker in these abominable economic times. Bair reiterates the same message week after week, although most likely the cause of a few 'Paulson & Co' migraines. Bair unde....
Perpetual Motion Economists
By Dan McLaughlin
2 comments»
Most of the present day economists are the modern equivalent of the high spirited inventors of prior times, bent on designing a perpetual motion machine. Perpetual motion enthusiasts were convinced they could get around the laws of physics to produce....
By Dan McLaughlin
2 comments»
Most of the present day economists are the modern equivalent of the high spirited inventors of prior times, bent on designing a perpetual motion machine. Perpetual motion enthusiasts were convinced they could get around the laws of physics to produce....
Forget about the Economists... Economics 101
By Norbert Haag
8 comments»
Given that this is an economy blog, it seems the headline is, at least, challenging. After all, economists are held in high regard, as the experts in the scientific field of economy. They have all those complex formulas to explain, predict and plan t....
By Norbert Haag
8 comments»
Given that this is an economy blog, it seems the headline is, at least, challenging. After all, economists are held in high regard, as the experts in the scientific field of economy. They have all those complex formulas to explain, predict and plan t....
Missing The Obvious
By Dan McLaughlin
19 comments»
I recently heard a very knowledgeable, influential person talking about the future. He had many insights that were helpful and valid. His economic views, however were quite disturbing. He made a comment to the effect that capitalism is immoral. He po....
By Dan McLaughlin
19 comments»
I recently heard a very knowledgeable, influential person talking about the future. He had many insights that were helpful and valid. His economic views, however were quite disturbing. He made a comment to the effect that capitalism is immoral. He po....
Why Mortgages should be banned
By Bhagwad Jal Park
3 comments»
Mortgages on houses, and in fact all situations where the payment of a certain service is spread out over a period of time, change the laws of economics in a curious way that sometimes leads to grotesque results. The particular law I am talking about....
By Bhagwad Jal Park
3 comments»
Mortgages on houses, and in fact all situations where the payment of a certain service is spread out over a period of time, change the laws of economics in a curious way that sometimes leads to grotesque results. The particular law I am talking about....
Does Paulson Understand the Average American Crises?
By Tamera Daun
1 comments»
Paulson has spoken. Yet again. The Treasury decided to increase the spending stakes. Paulson sang a familiar tune today, humming $600 billion for mortgage backed securities, and $200 billion meant to thaw credit for consumers. He aims at greater c....
By Tamera Daun
1 comments»
Paulson has spoken. Yet again. The Treasury decided to increase the spending stakes. Paulson sang a familiar tune today, humming $600 billion for mortgage backed securities, and $200 billion meant to thaw credit for consumers. He aims at greater c....
Obama's Economic Team - will they get it?
By Dirk McCoy
2 comments»
Today, Barrack Obama announced the core of his economic team. Timothy Geithner will lead Treasury, Larry Summers will head the National Economic Council, and Christina Romer will chair the Council of Economic Advisers. In his news conference, Presi....
By Dirk McCoy
2 comments»
Today, Barrack Obama announced the core of his economic team. Timothy Geithner will lead Treasury, Larry Summers will head the National Economic Council, and Christina Romer will chair the Council of Economic Advisers. In his news conference, Presi....
GOLD STANDARD ... DEBUNKED OR ANOTHER BUBBLE?
By Stephan Zimmermann
38 comments»
The financial liquidity crisis is in full swing around the world. It is no wonder that experts and novices alike seek ways and means to prevent a future recurrence. Many different solutions are enacted and proposed. All of them center on wealth and m....
By Stephan Zimmermann
38 comments»
The financial liquidity crisis is in full swing around the world. It is no wonder that experts and novices alike seek ways and means to prevent a future recurrence. Many different solutions are enacted and proposed. All of them center on wealth and m....
America's Most Effective Weapon Against the Rich
By G.L.C.
5 comments»
Inheritance is a civil right and not a natural right. Way back in 1898, the Supreme Court ruled that the right to take property by devise or descent is the creature of the law and not a natural right. The government had the absolute right to decide a....
By G.L.C.
5 comments»
Inheritance is a civil right and not a natural right. Way back in 1898, the Supreme Court ruled that the right to take property by devise or descent is the creature of the law and not a natural right. The government had the absolute right to decide a....
Why I want to get out of America as fast as I can
By Bhagwad Jal Park
17 comments»
I arrived in the United States a few months ago with my wife. It was my first time to America, and I was looking forward to experiencing new things and enjoying myself. However, I am becoming aware that far from being everything that America is hyped....
By Bhagwad Jal Park
17 comments»
I arrived in the United States a few months ago with my wife. It was my first time to America, and I was looking forward to experiencing new things and enjoying myself. However, I am becoming aware that far from being everything that America is hyped....
Why the efforts to rescue the economy may fail
By G.L.C.
4 comments»
In an attempt to resolve the present credit crisis, the United States government has taken many steps. Since September, it placed Fannie Mae and Freddie Mac, the mortgage giants under conservatorship, taken a majority stake in the American Internat....
By G.L.C.
4 comments»
In an attempt to resolve the present credit crisis, the United States government has taken many steps. Since September, it placed Fannie Mae and Freddie Mac, the mortgage giants under conservatorship, taken a majority stake in the American Internat....
Should HPV Vaccination Be Mandatory?
By J.C.
1 comments»
There has been a lot of recent news about a possible HPV Vaccine mandate in several states. For those of you who do not know what I am talking about, HPV is the Human Papilloma Virus that has been linked to cervical cancer. It's a virus that a lot of....
By J.C.
1 comments»
There has been a lot of recent news about a possible HPV Vaccine mandate in several states. For those of you who do not know what I am talking about, HPV is the Human Papilloma Virus that has been linked to cervical cancer. It's a virus that a lot of....
Ford, GM, Chrysler Announce Losses; Can the American Middle Class Survive a Big Three Meltdown?
By Evelyn Black
3 comments»
Can the U.S. economy possibly get any scarier or more complicated? The short answer is yes, it can. The longer, more complicated answer is that the looming (potential) failures of Ford, GM, and Chrysler present long term sustainability problems for....
By Evelyn Black
3 comments»
Can the U.S. economy possibly get any scarier or more complicated? The short answer is yes, it can. The longer, more complicated answer is that the looming (potential) failures of Ford, GM, and Chrysler present long term sustainability problems for....
Other Recent Articles
The Citigroup Bailout Unmasks the Fed
By J.D. Seagraves
In 2007, Citigroup was the largest bank in the world, worth over $300 billion. This was the peak of the Federal Reserve’s latest inflationary bubble, and business for Citigroup—a chief participant in the Fed’s legal counterfeiting—was good. &nb..
By J.D. Seagraves
In 2007, Citigroup was the largest bank in the world, worth over $300 billion. This was the peak of the Federal Reserve’s latest inflationary bubble, and business for Citigroup—a chief participant in the Fed’s legal counterfeiting—was good. &nb..
The Promise of New Treatments to help Babies Still in the Womb
By R.C. Anderson
Although doctors have been able to perform surgeries on babies before their birth for the last 20 years, it has only recently become an option that could be practiced more frequently in the near future. Currently, the risky nature of a surgery to..
By R.C. Anderson
Although doctors have been able to perform surgeries on babies before their birth for the last 20 years, it has only recently become an option that could be practiced more frequently in the near future. Currently, the risky nature of a surgery to..
Trading off: virtual companies and relative economics
By Cheryl Grey
The advantages of going virtual for companies are obvious. One of the greatest of these, yet one that’s often overlooked, is the ability to select employees without geographical limitations or relocation costs. This also carries cost..
By Cheryl Grey
The advantages of going virtual for companies are obvious. One of the greatest of these, yet one that’s often overlooked, is the ability to select employees without geographical limitations or relocation costs. This also carries cost..
Blog Categories
Most Commented
GOLD STANDARD ... DEBUNKED OR ANOTHER BUBBLE?
By Stephan Zimmermann
38 comments»
The financial liquidity crisis is in full swing around the world. It is no wonder that experts and novices alike seek ways and means to prevent a future recurrence. Many different solutions are enacted and proposed. All of them center on wealth and m....
By Stephan Zimmermann
38 comments»
The financial liquidity crisis is in full swing around the world. It is no wonder that experts and novices alike seek ways and means to prevent a future recurrence. Many different solutions are enacted and proposed. All of them center on wealth and m....
Got an Economics Question?
By Stephan Zimmermann
20 comments»
The Internet, television, and magazines or newspapers are full of features concerning economics. So is Amateur Economists. The gamut runs from economic philosophy to politics to econometrics and more. Readers have many questions. Undoubtedly, you w....
By Stephan Zimmermann
20 comments»
The Internet, television, and magazines or newspapers are full of features concerning economics. So is Amateur Economists. The gamut runs from economic philosophy to politics to econometrics and more. Readers have many questions. Undoubtedly, you w....
Missing The Obvious
By Dan McLaughlin
19 comments»
I recently heard a very knowledgeable, influential person talking about the future. He had many insights that were helpful and valid. His economic views, however were quite disturbing. He made a comment to the effect that capitalism is immoral. He po....
By Dan McLaughlin
19 comments»
I recently heard a very knowledgeable, influential person talking about the future. He had many insights that were helpful and valid. His economic views, however were quite disturbing. He made a comment to the effect that capitalism is immoral. He po....
Why I want to get out of America as fast as I can
By Bhagwad Jal Park
17 comments»
I arrived in the United States a few months ago with my wife. It was my first time to America, and I was looking forward to experiencing new things and enjoying myself. However, I am becoming aware that far from being everything that America is hyped....
By Bhagwad Jal Park
17 comments»
I arrived in the United States a few months ago with my wife. It was my first time to America, and I was looking forward to experiencing new things and enjoying myself. However, I am becoming aware that far from being everything that America is hyped....
Dominant Economic Views in Western Society, Part II
By Stephan Zimmermann
16 comments»
It would be (or maybe is?) an interesting and informative exercise to poll existing undergraduate economic students whether they consider themselves “Homo economicus.” A second part of the study could be completed with graduate students, about to ....
By Stephan Zimmermann
16 comments»
It would be (or maybe is?) an interesting and informative exercise to poll existing undergraduate economic students whether they consider themselves “Homo economicus.” A second part of the study could be completed with graduate students, about to ....
Did the Community Reinvestment Act Lead to the Present Financial Crisis?
By Evelyn Black
13 comments»
With the U.S. credit crunch gone global and the $700 billion bailout package now looking like a small drop of water in a tidal wave of woe, the question of blame is now all over the media. Who caused this mess? If you read the Wall Street Journ....
By Evelyn Black
13 comments»
With the U.S. credit crunch gone global and the $700 billion bailout package now looking like a small drop of water in a tidal wave of woe, the question of blame is now all over the media. Who caused this mess? If you read the Wall Street Journ....
Monetarism or the Austrian School: Which Is More Effective?
By Stephan Zimmermann
13 comments»
At a most appropriate time, Sukrit asks: What is the difference between the Austrian business cycle theory and monetarism, and which one do you think is a more accurate description of how the economy works? The first part is fairly easily ex....
By Stephan Zimmermann
13 comments»
At a most appropriate time, Sukrit asks: What is the difference between the Austrian business cycle theory and monetarism, and which one do you think is a more accurate description of how the economy works? The first part is fairly easily ex....
GM Encouraged by 24.5% Sales Drop in August
By Evelyn Black
12 comments»
After posting a 24.5% decline in August sales, GM announced on September 3 that it was encouraged by falling gas prices and signs that the market might finally be bottoming out. It takes a whale of a positive attitude to see a bright spot in a sales ....
By Evelyn Black
12 comments»
After posting a 24.5% decline in August sales, GM announced on September 3 that it was encouraged by falling gas prices and signs that the market might finally be bottoming out. It takes a whale of a positive attitude to see a bright spot in a sales ....
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The Citizen Economists Poll
Q.
How is the Fed's performance in the present economy?
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Book Review
Lessons on Innovation from the CEO of Proctor & GambleAs the subtitle (How You Can Drive Revenue and Profit Growth) of The Game-Changer indicates, this recent volume by A. G. Lafley and Ram Charan is meant more as a business book, even a business how-to manual, than as an economics text. T..
In the Forums
Religion and Economics
"Without referring to religion, the point that would-be economists need to address is their fundamental view of nature of mankind. To me it is important that not only the Judeo-Christian-Muslim views be addressed, but also the various philosophies of the...African worlds. Perhaps since the U.S. and modern Europe are the accepted leaders in terms of economic theories, tracing that branch of the science back to Abrahamic principles might well be an appropriate first step. ...No matter what the approach, a recognition of each person's view of the nature of mankind should make economics much easier to digest and understand." Discuss...
Recent Comments
Dan McLaughlin:
Hi Dirk, Thanks for you comments. You are very right that teaching to fish is the long term solution to too few fish. Your last sentence, however, is not nearly as obvious as you think. Hoarding is holding onto something you own, your wealth ...
Hi Dirk, Thanks for you comments. You are very right that teaching to fish is the long term solution to too few fish. Your last sentence, however, is not nearly as obvious as you think. Hoarding is holding onto something you own, your wealth ...
Norbert Haag:
Raymond is basically right. Just one remark to clarify this argument a bit more and strenghten it. What makes socialist economy, that is central planned economy, impossible is not the lack of consumer prices, but mainly the lack of prices for capital...
Raymond is basically right. Just one remark to clarify this argument a bit more and strenghten it. What makes socialist economy, that is central planned economy, impossible is not the lack of consumer prices, but mainly the lack of prices for capital...
Dirk:
I'm not saying Bill Gates making "investments" in technology to combat AIDS or improve education without a profit motive is bad or good- he has put money into the kind of research you seem to think he can only invest in for a profit motive, which is ...
I'm not saying Bill Gates making "investments" in technology to combat AIDS or improve education without a profit motive is bad or good- he has put money into the kind of research you seem to think he can only invest in for a profit motive, which is ...
Dirk:
MV=QP Velocity of money has crashed as confidence has plummeted. Quantity of output is dropping, as are prices. And as asset values fall, M is effectively further reduced. To turn this around, we have to create massive amounts of M- as inflatio...
MV=QP Velocity of money has crashed as confidence has plummeted. Quantity of output is dropping, as are prices. And as asset values fall, M is effectively further reduced. To turn this around, we have to create massive amounts of M- as inflatio...
Dirk:
When wingnut says he wants economies outlawed, I'm guessing he means he wants money and the use of it outlawed- that we should be able to take (and share) what we need (and have). While I would agree that Heaven may not have money (especially if the...
When wingnut says he wants economies outlawed, I'm guessing he means he wants money and the use of it outlawed- that we should be able to take (and share) what we need (and have). While I would agree that Heaven may not have money (especially if the...
Matt McKnight:
Sheila Bair plans to use tax dollars to help people that bought homes that were too expensive for them to afford. This means that responsible people are being asked to bail out irresponsible people. That's really, really annoying to me. I could be li...
Sheila Bair plans to use tax dollars to help people that bought homes that were too expensive for them to afford. This means that responsible people are being asked to bail out irresponsible people. That's really, really annoying to me. I could be li...
Emmanuel Tabones:
American Christian Socialism really isn't based on a solid theological foundation-if we were to simply go by scripture. I am a church-going Catholic myself, and I certainly disagree with some of the socialist leanings of certain church leaders-espec...
American Christian Socialism really isn't based on a solid theological foundation-if we were to simply go by scripture. I am a church-going Catholic myself, and I certainly disagree with some of the socialist leanings of certain church leaders-espec...
Dan McLaughlin:
Hi Wingnut, I am a Christian. I have spent literally thousands of hours over the last few decades reading the bible, thinking and reading about it and trying to understand the gospel of Jesus. To me, the unequivocal message of Jesus is the messa...
Hi Wingnut, I am a Christian. I have spent literally thousands of hours over the last few decades reading the bible, thinking and reading about it and trying to understand the gospel of Jesus. To me, the unequivocal message of Jesus is the messa...
